The local currency market witnessed a rise in dollar demand amid speculative trading last week, while the rupee remained under pressure. On the interbank market, the rupee commenced April in negative mode.

On Monday, the rupee inched down on the buying counter, retaining selling counter rate unchanged against the dollar at Rs115.49 and Rs115.51 against the last closing at Rs115.48 and Rs115.51.

On Tuesday, however, the dollar closed the session slightly higher at Rs115.59 and Rs115.60.

The rupee plunges to lowest in four years against the dollar

The rupee further edged down on Wednesday, trading against the dollar at Rs115.61 and Rs115.62 after losing two paisa over the previous session.

The rupee on Thursday gained one paisa before closing at Rs115.60 and Rs115.61.

The rupee gained one paisa on Friday, pushing the dollar slightly lower at Rs115.59 and Rs115.60 at the close of the session.

In the open market, after depreciating by 3.4 per cent against the dollar in March, the rupee commenced April by losing 10 paisa on Monday, trading at Rs115.80 and Rs116.30 against the prior weekend’s levels of Rs115.70 and Rs116.20.

On Tuesday, the rupee shed 20 paisa on the buying counter and 10 paisa on the selling counter with the parity hitting fresh peaks at Rs116.00 and Rs116.40.

On Wednesday amid highly volatile trading, the rupee plunged to Rs116.10 and Rs116.50, shedding 10 paisa against the dollar.

The rupee further lost 10 paisa on Thursday, pushing the dollar to its highest level at Rs116.20 and Rs116.60 in the past four years.

Retaining overnight rates on Friday, the rupee traded at Rs116.20 and Rs116.60 against the dollar. On a weekly basis, the dollar in the open market appreciated by 50 paisa on the buying counter and 40 paisa on the selling counter against the rupee.

Against the euro, the rupee further weakened last week. After depreciating by 3.55pc in March, the rupee entered April retaining its prior weekend rate unchanged at Rs141.00 and Rs142.80 on Monday.

On Tuesday, the rupee lost 50 paisa on the buying counter but traded unchanged on the selling counter at Rs141.50 and Rs142.80.

On Wednesday, the rupee retained overnight rates on the buying counter, but shed 20 paisa on the selling counter, with the euro trading against the rupee at Rs141.50 and Rs143.00.

On Thursday, the rupee shed 30 paisa on the buying counter and 60 paisa on the selling counter, pushing the euro to historic highs since March 5, 2014 at Rs141.80 and Rs143.60.

The euro traded lower at Rs141.50 and Rs143.30 after the rupee picked up 30 paisa on Friday.

Published in Dawn, The Business and Finance Weekly, April 9th, 2018