Rupee report: Euro gains against rupee
In international trade, the dollar posted a series of multiyear highs after the US Federal Reserve’s hint last week that it might raise interest rates up to three times in 2017, which was more than what some traders had expected.
During the week, the dollar initially climbed to a 14-year high but then declined against a basket of currencies later in the week, as traders booked profits and brushed off mostly upbeat US economic data.
The dollar rally that started six weeks ago has been supported by bets that US President-elect and a Republican-controlled Congress would slash taxes and boost federal spending, resulting in higher growth and inflation.
The greenback has gained 5.1pc since Nov 8 US presidential election
The greenback has gained 5.1pc since Nov 8 presidential election.
In the domestic currency market, the rupee/dollar parity is seen hitting Rs109 mark any time before year end.
After crossing the Rs108 barrier last week, the rupee is currently trading against the dollar near a four year low. In the past month, it has depreciated by 1.4pc against the dollar in the open market where it is trading higher by Rs3.35 or 3.1pc as compared to the interbank market.
In interbank dealings, the rupee/dollar parity has shown a steady trend since July this year after hitting its lowest level at Rs104.94/95 in January 2016.
Last week on the interbank market, the rupee/dollar parity moved in narrow band as supply and demand for dollar remained in balance amid lacklustre activity in the week.