Rupee report: Rupee gains against dollar
Trading activity in the local currency market was reduced to two sessions last week as the market remained closed on account of Eid holidays from Sept 12-14.
Trading resumed on Sept 15, the market observed a mounting demand for dollar, exerting a downward pressure on the rupee in the opening session due to a prolonged closure of the market.
In international trade, the dollar weakened versus most of its major peers as wholesale inflation stayed unchanged last month, while industrial production fell more than projected, reducing the central bank’s scope to tighten policy.
In the last three months so far, the euro has traded in broad ranges amid sharp fluctuations against
the rupee
Sterling traded flat against the dollar after recording its first week of losses in four, as investors awaited comments from Federal Reserve officials for further clues on whether US interest rates will be hiked soon.
On the interbank market, it posted 28-paisa loss over last closing level of Rs104.35 and Rs104.37 before receding to almost a week low at Rs104.63 and Rs104.65 against the dollar.
The rupee closed the week at Rs104.61 and Rs104.63, gaining two paisas against the dollar.
Against the dollar on the interbank market, the rupee hit its highest level on Sept 9 and its lowest level on July 4, this year.
In the open mark, the rupee/dollar parity followed a similar trend in line with the interbank market.