In the local currency market, the rupee continued to trade under pressure against the dollar in the open market last week while the country’s foreign exchange reserves fell to $17.286 billion last week against $17.712bn a week ago.
The dollar traded unmoved against the rupee for the second straight week as the rupee traded stable against the dollar on the interbank market last week.
Retaining previous weekend level, the parity commenced the week unchanged and continued to change hands at Rs115.61 and Rs115.62 in all five trading sessions.
In the open market, the rupee moved both ways against the dollar, trading in narrow range between Rs117.50/80 and Rs118.00/60 last week.
After reversing the previous weekend’s sharp gains, the rupee came under renewed pressure last week following the UAE’s decision not to allow exchange of currencies without the permission of origin countries.
The parity continued to change hands at Rs115.61 and Rs115.62 in all five trading sessions in the interbank market
The week commenced on a negative note as the rupee gave up its weekend firmness on Monday, changing hands at Rs117.50 and Rs117.80 against the last closing at Rs116.70 and Rs117.20.
Despite comfortable dollar supplies, the rupee downtrend against the dollar persisted on Tuesday enabling the dollar to surge to Rs118.10 and Rs118.60.
On Wednesday the dollar slipped to Rs117.70 and Rs118.20.
As positive sentiments prevailed in the market, the rupee upward march against the dollar persisted on Thursday trading at Rs117.50 and Rs118.00.
The dollar closed the week at Rs117.30 and Rs117.80, following flat demand from corporate and private sector in interbank.
Against euro, the rupee depicted mixed sentiments amid slight fluctuations. Snapping previous week’s losing streak against the rupee, the euro rebounded sharply on Monday with the rupee dipping to Rs139.30 and Rs141.00 against the previous weekend’s Rs138.00 and Rs140.00.
On Tuesday the rupee changed hands against the euro at Rs139.50 and Rs141.00.
The rupee managed to stage a slight recovery against the euro on Wednesday. At the close of the session, the euro was seen trading against the rupee at Rs139.40 and Rs141.00.
The rupee rebounded against the euro on Thursday, with the euro descending to the week’s lowest level at Rs138.85 and Rs140.20
Finally, the rupee ended the week on a negative note against the euro. Failing to hold firm ground in the last trading session, it closed the week at Rs139.60 and Rs141.10.
Published in Dawn, The Business and Finance Weekly, May 14th, 2018