Firmness prevailed in the local currency market amid dull trading activities throughout last week. Currency dealers experienced sluggish dollar demand.
On the interbank market, the rupee commenced last week in plus against the dollar after remaining stable at Rs121.54/56 in the earlier week.
It was seen changing hands against the dollar at Rs121.54 and Rs121.55 on Monday over the last closing at Rs121.55 and Rs121.56. The rupee traded flat against the dollar on Tuesday.
The rupee-to-dollar exchange rate traded in narrow range between Rs121.54 and Rs121.56
Amid dull demand from corporate and private sector, the rupee continued to trade flat on Wednesday and Thursday, retaining its overnight rate at Rs121.54 and Rs121.55.
In the last trading session, the rupee traded unchanged against the dollar for the fifth straight day, closing the week at Rs121.54 and Rs121.55.
In the open market, the rupee recorded gains against the dollar after trading flat at Rs124/124.50 in all the five sessions of the previous week.
Market participants showed lack of interest. The rupee posted a 20paisa gain on Monday with the dollar changing hands at Rs123.80 and Rs124.30 against the prior weekend levels of Rs124.00 and Rs124.50.
The parity retained its overnight levels on Tuesday and continued to trade flat against the dollar at Rs123.80 and Rs124.30.
The dollar remained negative on Wednesday as the rupee pushed the dollar further down to Rs123.50 and Rs124.00. The parity maintained its firmness on Thursday as the rupee traded flat against the dollar, closing at Rs123.50 and Rs124.00.
The rupee turned negative on Friday and closed the week slightly weaker against the dollar at Rs123.60 and Rs124.10.
Against euro, the rupee was seen in recovery stage last week. It staged a sharp rebound on Monday, changing hands at Rs144.00 and Rs146.00 against the prior week close at Rs144.50 and Rs146.50.
It, however, failed to hold its firmness and reverted to Rs144.50 and Rs146.50 on Tuesday.
The rupee bounced back against the euro on Wednesday and the euro drifted to Rs143.75 and Rs145.75.
The euro continued its downslide on Wednesday, changing hands at Rs143.50 and Rs145.50.
The downslide persisted on Thursday as the rupee turned buoyant before closing the week near a two-week peak at Rs143.00 and Rs145.00.
Overall, on week over week basis, however, the rupee posted a weekly gain of Rs1.50 against the euro.
Published in Dawn, The Business and Finance Weekly, July 16th, 2018