Rupee report: Dollar gains against rupee
In the local currency market, the rupee came under slight pressure against the dollar, last week, as the strengthening greenback — against its major rivals in overseas trade — capped rupee gains in the domestic market towards the weekend.
On the interbank market last week, the rupee traded against the dollar in narrow ranges, moving both ways amid lacklustre demand and dull trading activity.
In the last trading session, the rupee suddenly turned negative against the dollar. It shed ten-paisa before closing the week at Rs104.64 and Rs104.65, hitting its lowest level in the week against the dollar.
Against euro, the rupee rebounded sharply in the last trading session, closing the week on a positive note
The rupee came under pressure as the market turned a little volatile on sudden surge in dollar demand from importers after Sterling lost a tenth of its value in minutes and plunge to a fresh 31-year-low before quickly recouping losses in Asia’s thin early trade.
During the week, the dollar on the interbank market lost up to 12paisa in three sessions and at the same time recovered 15paisa in two sessions. The rupee, however, lost four-paisa on the buying counter and three-paisa on the selling counter against the dollar on week on week basis.
In the open market, the rupee/dollar parity exhibited a similar trend in line with interbank market.
The dollar, rebounded in the last trading session after the rupee lost ten-paisa in the last trading session and plunged to almost a three-week low at Rs105.20 and Rs105.40 at the close of the week.
The local market noticed that the rupee came under pressure towards the close of the week on the sudden rise in dollar demand after the dollar, in overseas trade, fell against its major rivals, snapping a four-day streak of gains, following the release of the September US employment report that revealed fewer jobs, not enough to change the Federal Reserve’s stance on raising interest rates.