In the local currency market, the rupee traded range-bound on the back of soft dollar demand from importers.
Better inflow of forex and dull demand from corporate and private sector helped the rupee trade firm against the dollar. Market expects that demand for dollars from Hajj pilgrims in coming weeks could exert pressure on the rupee.
Last week on the interbank market, the rupee showed a steady trend against the dollar for the second consecutive week. Commencing the week unchanged at Rs115.61 and Rs115.62, the dollar traded flat in all the five sessions amid dull trading.
In the open market, the rupee last week was seen in the recovery stage against the dollar, trading in narrow band
In the open market, the rupee last week was seen in the recovery stage against the dollar, trading in narrow band.
Extending weekend firmness, the rupee commenced the week on a positive note trading at Rs118.20 and Rs118.70 on Monday, against the last closing at Rs118.50 and Rs119.00.
Extending overnight gains, the rupee continued its upward march against the dollar on Tuesday when the dollar was seen changing hands slightly lower at Rs118.10 and Rs118.60.
On Wednesday the rupee traded at Rs118.00 and Rs118.50, its highest level in the past three weeks.
On Thursday, however, the rupee failed to hold firm ground and dipped lower at Rs118.10 and Rs118.60.
On Friday the rupee again turned positive, recovering overnight losses and closed the week at Rs118.00 and Rs118.50.
Market participants expect the open market to see further corrections next week due to increase inflows in overseas remittances ahead of Eid.
During the week in review, the dollar in the open market lost 60paisa against the rupee in four trading session, while gaining ten-paisa in one session. On week on week basis, the rupee managed to gain 50paisa against the dollar last week.
Against euro, the rupee escalated both ways in narrow band. It did not show any change in the week’s opening session and traded flat at Rs138.00 and Rs139.50. The rupee gained against the euro on Tuesday, pushing euro slightly lower at Rs137.80 and Rs139.30.
On Wednesday the euro was trading slightly higher at Rs138.00 and Rs139.50.
On Thursday, the rupee again managed to recover overnight losses that pushed euro further down to Rs137.80 and Rs139.30.
The rupee turned negative on Friday closing the week at Rs138.25 and Rs139.75.
During the week, the euro managed to gain 65paisa against the rupee in two sessions and at the same time it lost 40paisa in two sessions while trading unchanged in one session.
Published in Dawn, The Business and Finance Weekly, June 11th, 2018