LAST week on the interbank market, the rupee continued to trade weaker against the dollar. Extending weekend losses on Monday, the rupee lost 23 paisa on the buying counter and another 22 paisa on the selling counter, despite dull activities ahead of Eidul Azha celebrations.

The dollar climbed to Rs124.23 and Rs124.27 from the last closing at Rs124.00 and Rs124.05. Trading remain suspended from Aug 21 to Aug 24 due to long Eid holidays.

Trading resumed on Aug 24 which was the week’s last trading session. On Friday, the rupee inched down by one paisa on the buying counter and at the same time inched up by one paisa on the selling counter before closing the week at Rs124.24 and Rs124.26.

The dollar managed to gain up to 24 paisa against the rupee on a week-on-week basis and 34 paisa in the three weeks of August.

The dollar managed to gain up to 24 paisa against the rupee on a week-on-week basis and 34 paisa in the three weeks of August

In the open market, the rupee last week was seen under slight pressure against the dollar despite lacklustre activities. The rupee on Monday was seen changing hands against the dollar at Rs121.70 and Rs123.00 after shedding 20 paisa on the buying counter and 50 paisa on the selling counter over the previous weekend levels of Rs121.50 and Rs122.50.

When trading resumed on Aug 24 after Eid holidays, the rupee came under mounting demand pressure. It lost 80 paisa on the buying counter and 50 paisa on the selling counter on Friday before closing the week at Rs122.50 and Rs123.50.

During the week, the dollar in the open market gained 100 paisa against the rupee on a weekly basis.

The rupee has, however, appreciated by 100 paisa against the dollar in the three weeks of August.

Against the euro, the rupee remained depressed during the week. The week however, commenced on a negative note. The rupee extended its weekend downslide versus the euro on Monday.

It lost 50 paisa on the buying counter, but did not show any change on the selling counter with the euro trading at Rs136.00 Rs140.50 against the previous weekend levels of Rs135.50 and Rs140.50.

When trading resumed on Aug 24, strong demand for the euro on Friday caused the rupee to post Rs1.75 loss on the buying counter and another Rs2.25 loss on the selling counter, closing the week against the euro at Rs137.75 and Rs142.75.

Published in Dawn, The Business and Finance Weekly, August 27th, 2018