The local currency market witnessed a diverse trend last week.
Investors have adopted a wait-and- see policy, ahead of national elections.
On the interbank market, the rupee was relieved of pressure slightly last week. It moved both ways trading range-bound amid minor changes.
Investors have adopted a wait-and- see policy, ahead of national elections
The rupee turned positive on Monday and the dollar descended to Rs121.50 and Rs121.52 from the previous weekend’s levels of Rs121.52 and Rs121.55.
On Tuesday, the rupee turned negative as demand remained high from importers pushing the dollar slightly higher at Rs121.54 and Rs121.56 at the close of the session.
The rupee resisted further decline against the dollar on Wednesday, trading at Rs121.54 and Rs121.55.
The parity traded little changed on Thursday changing hands at Rs121.54 and Rs121.56.
The rupee closed the week on a positive note against the dollar which was seen changing hands at Rs121.49 and Rs121.51 on Friday.
In the open market, the rupee-to-dollar exchange rates showed somewhat stable trend last week after experiencing sharp volatility in the previous weeks. On Monday the dollar was seen changing hands at Rs124.20 and Rs124.70 against the last closing at Rs124.00 and Rs124.50.
The rupee turned positive on Tuesday and the dollar reverted to the weekend level of Rs124.00 and Rs124.50.
The rupee extended overnight firmness on Wednesday and the dollar slid to Rs123.80 and Rs124.30.
On Thursday, the dollar was pushed further down at Rs123.50 and Rs124.00.
The dollar closed the week in plus after the rupee shrugged off its previous three sessions’ gains owing to strong demand for dollar on Friday, changing hands slightly higher at Rs123.90 and Rs124.40.
Against euro, the rupee was seen in recovery stage trading range bound amid variations. It, however, commenced the week in a negative mode, losing in the first trading session that enabled the euro to hit fresh peak at Rs143.25 and Rs145.25 from the last closing at Rs142.00 and Rs144.00.
The rupee managed to rebound against the euro in the following three sessions. It posted a gain on Tuesday pushing euro slightly lower at Rs143.00 and Rs145.00.
On Wednesday the rupee further dragged euro to Rs142.00 and Rs144.00.
The euro continued its downturn versus the rupee on Thursday, trading at at Rs141.00 and Rs143.00.
The week finally ended on a negative note as the rupee fell sharply on Friday, changing hands at Rs142.50 and Rs144.50.
Published in Dawn, The Business and Finance Weekly, July 2nd, 2018