The dollar slipped in the local currency market last week as the country received forex inflows from the Sukuk, in addition to continuously rising home remittances.

According to independent reports, so far this year, the rupee has appreciated by 6.7pc against the dollar in the interbank market and by 5.9pc in the open market. The local currency is also up 17pc against the euro this year.

On the interbank market, the rupee started the week with a gain of 28 paisas for buying and 26 paisas for selling, sending the dollar down to Rs101.07 and Rs101.12 in the first trading session, against the prior week’s close of Rs101.35 and Rs101.38.

The dollar dipped to Rs101.00 and Rs101.05 in the second trading session after the rupee picked up seven paisas.

The rupee rose by a further six paisas for buying and seven paisas for selling in the third trading session, as the dollar slipped below the Rss101-mark to Rs100.94 and Rs100.98.

The rupee appreciated by around 75 paisas against the dollar in interbank dealings and by 10 paisas in the open market last week

The rupee picked up another 29 paisas in the fourth trading session, sending the dollar down to Rs100.65 and Rs100.68. It inched up by a further five paisas for buying and three paisas for selling in the last trading session, as the greenback closed the week at Rs100.60 and Rs100.65.

The dollar depreciated by 75 paisas for buying and 73 paisas for selling in the interbank market last week.

In the open market, the rupee remained largely static against the dollar. It started the week with a gain of 20 paisas, sending the dollar down to Rs101.30 and Rs101.50 in the first trading session. The rupee-dollar parity then remained unchanged for the next two trading sessions.

In the fourth trading session, the rupee picked up 10 paisas, as the dollar slipped to Rs101.20 and Rs101.40. The rupee-dollar parity remained unchanged at this level in the last trading session, with the greenback losing 10 paisas in the week.

However, the local currency fared differently against the euro. It started the week with a sharp gain of 75paisas, as the euro dropped to Rs124.25 and Rs124.50 in the first trading session. However, it gave back 75 paisas in the second trading session, as the euro reverted back to Rs125.00 and Rs125.25.

The rupee shed another 25 paisas in the third trading session, sending the euro up at Rs125.25 and Rs125.50. It then suffered another loss of 50 paisas, as the single currency rose to Rs125.75 and Rs126.00 in the fourth trading session.

The rupee-euro parity remained unchanged at this level in the last trading session. The euro appreciated by a net 75 paisas against the rupee last week.

In the first two weeks of December, the rupee had surged to Rs124.25 and Rs124.50 against the euro on December 8, its highest level since November 29, according to independent reports.

Published in Dawn, Economic & Business, December 15th , 2014