In the local currency market, the rupee/dollar parity depicted a steady trend last week amid lacklustre trading activity and dull dollar demand.

On the interbank market, dull demand from the importers and corporate sector kept the dollar from surging. The rupee remained almost steady amid minor variation.

On Monday, the rupee inched down by two paisa enabling the dollar to climb to Rs110.57 and Rs110.58 against the previous week close at Rs110.55 and Rs110.56.

The parity traded flat on Tuesday and Wednesday at Rs110.57 and Rs110.58 for three straight sessions. On Friday, the rupee inched up by one paisa, trading at Rs110.56 and Rs110.57 against the dollar.

During the week, the dollar on the interbank market appreciated against the rupee

During the week, the dollar on the interbank market appreciated against the rupee by one paisa, trading in a narrow band on a week-on-week basis.

In the open market, the rupee showed a firm trend against the dollar amid dull trading activity in the absence of leading currency players.

The rupee picked up 10 paisa against the dollar on Monday as it hovered slightly higher at Rs111.60 and Rs111.90 against the last closing at Rs111.70 and Rs112.00.

The rupee continued its rising trend against the dollar on Tuesday. It further gained 10 paisa as demand from private sector buyers remained dull. The dollar drifted lower at Rs111.50 and Rs111.80.

The rupee sustained its overnight levels on Wednesday and traded flat at Rs111.50 and Rs111.80 against the dollar.

With no change in interbank transaction and dull demand from private sector’s buyers, the parity continued to trade flat on Friday at Rs111.50 and Rs111.80.

Resisting further decline, the rupee ended the week flat against the dollar at Rs111.50 and Rs111.80. During the week, the rupee depicted 20 paisa gain against the dollar in the open market on a weekly basis.

Against euro, the rupee continued to show a mixed trend last week. On Monday it lost 50 paisa on the buying counter and 100 paisa on the selling counter.

The gap between the buying and selling rates widened to Rs2 from Rs1.50 in the previous week. At the close of the week, the euro was seen changing hands at Rs136.75 and Rs138.25 against the prior week’s close at Rs136.25 and Rs137.75.

On Tuesday the euro lost 25 paisa on the buying counter and 75 paisa on the selling counter. On Wednesday, the euro recovered 80 paisa on both the counters. On Friday, it gained 30 paisa, ending the week at Rs136.70 and Rs138.20 in range-bound trading. During the week, the euro rose by 45 paisa on a week-on-week basis.

Published in Dawn, The Business and Finance Weekly, March 19th, 2018