The currency market remained stable, despite falling forex reserves because of rising external debt repayment last week.

Dollar demand remained almost flat while the parity showed minor changes, moving both ways in tight band.

Last week, the rupee showed a steady trend after a modest dip against the dollar in the week’s opening session on the interbank market.

Extending previous weekend weakness, the parity traded in a very narrow range with the dollar changing hands at Rs110.55 and Rs110.56 after the last closing at Rs110.54 and Rs110.55.

The rupee recovered overnight loss and picked up on Tuesday. As a result, the dollar reverted to the prior weekend position at Rs110.54 and Rs110.55.

Due to lack of interest shown by the market participants on Wednesday and Thursday, the rupee did not show any change and continued to trade flat at Rs110.54 and Rs110.55.

Dollar demand remained almost flat while the parity showed minor changes, moving both ways in tight band

Finally the week ended on a positive note with the dollar trading slightly lower at Rs110.53 and Rs110.54 on Friday.

In the open market, the rupee/dollar parity stayed range-bound in the absence of market triggers.

On Monday the rupee inched down on the buying counter, trading almost flat at Rs111.90 and Rs112.20 against the previous weekend’s levels of Rs111.80 and Rs112.20.

On Tuesday, the rupee was quoted at Rs111.80 and Rs112.10.

Owing to balanced demand and supply of dollars amid lacklustre activity, the parity traded unchanged, on Wednesday, trading for the second straight day at Rs111.80 and Rs112.10.

On Thursday, the dollar changed hands at Rs111.90 and Rs112.30.

Extending overnight losses against the dollar, on Friday the dollar rose to the week’s highest level at Rs112.00 and Rs112.30 at the close of the week.

Against euro, the rupee extended its weekend’s decline and continued to trade in negative territory in on Monday to trade at the week’s highest levels at Rs136.40 and Rs138.40 and down from the prior week’s level of Rs135.50 and Rs137.50.

However, it managed to recover on Tuesday with euro changing hands slightly lower at Rs136.0 and Rs138.00.

The parity did not show any change on Wednesday when the rupee traded flatly against the euro at Rs136.00 and Rs138.00 for the second day in a row.

On Thursday, the rupee continued its downslide against the euro, at Rs136.30 and Rs138.30. This falling trend persisted in the last trading session.

Extending overnight losses, the euro rose to Rs136.60 and Rs138.60 at the close of the week, its highest level since May 13, 2014.

Published in Dawn, The Business and Finance Weekly, January 22nd,2018