Last week, the dollar closed depressed against the rupee in the local currency market after hitting an all-time high above Rs130 in the earlier week.
Last week on the interbank market the rupee closed firm against the dollar. On Monday the rupee did not show any change on the buying counter while inching up on the selling counter when the dollar traded at Rs128.49 and Rs128.50 against the prior weekend level of Rs128.49 and Rs128.51.
On Tuesday the rupee gained against the dollar, changing hands at Rs128.32 and Rs128.34 amid slowdown in dollar demand from importers ahead of the general elections.
Last week on the interbank market the rupee closed firm against the dollar
The rupee continued to surge against the dollar, further extending overnight gains on Thursday trading at Rs128.15 and Rs128.20.
On Friday, the rupee continued its upward march against the dollar due to insignificant demand from corporate sector closing the week against the dollar at Rs127.80 and Rs127.90.
In the open market the week commenced in minus as panic dollar buying continued to exert downward pressure on the rupee. Extending week long weakness, the rupee on Monday plunged to historic lows against the dollar which was seen changing hands at Rs130.30 and Rs130.80 over the previous week’s closing levels of Rs130.20 and Rs130.70.
The rupee turned positive on Tuesday after it managed to stage a recovery versus the dollar at Rs129.50 and Rs130.00 amid dull demand for dollar.
The rupee rising trend persisted in the following two sessions. Trading remained suspended on July 25 due to public holiday on account the elections. When trading resumed on July 26, the dollar drifted lower at Rs129.00 and Rs129.30, following flat dollar demand from corporate and private sector in interbank.
The rupee posted a sharp recovery on Friday, and consequently the dollar further drifted lower and closed the week at Rs127.00 and Rs127.70.
Against euro, the rupee tumbled to all time low, breaching Rs152 barrier last week. Continuing its downtrend, the rupee commenced the week in minus, On Monday the rupee closed the session at Rs150.00 and Rs152.50 against the last closing at Rs149.80 and Rs152.30.
However it staged a sharp recovery ahead of the elections, gaining Rs2 on Tuesday. Consequently the euro descended from the historic peak to Rs148.00 and Rs150.50.
On Thursday, the parity did not show any change as the rupee continued to trade flat at Rs148.00 and Rs150.50 for the second day in a row.
It, however, closed the week on a firm note after the rupee posted sharp gains, picking up Rs5 on the buying counter and Rs4 on the selling counter On Friday that pushed the euro down to its lowest levels in three weeks at Rs143.00 and Rs146.50 towards the close of the week.
Published in Dawn, The Business and Finance Weekly, July 30th, 2018