THE dollar in overseas trade slumped to the lowest level since November as a reaction to President Donald Trump disclosing classified information to a Russian official during the week.
In the local currency market, the rupee traded weaker against the dollar in the first trading session. It lost one paisa and two paisas on the buying and selling countres respectively to trade at Rs104.83 and Rs104.85 against the last closing at Rs104.82 and Rs104.83.
With a rupee continued downslide for the second day, the rupee suffered two paisas loss and one paisa losses on the buying and selling countres against the dollar at Rs104.85 and Rs104.86.
After posting a three paisas loss in the first two sessions, it managed to resist the sharp erosion against dollar in the following three. The rupee/dollar parity remained unchanged in the third trading session when the rupee traded flat versus the dollar at Rs104.85 and Rs104.86 for the second straight day due to comfortable supply of dollar.
The dollar witnessed bearish sentiments in the last two sessions. The parity closed the week unchanged, trading flat at Rs104.85 and Rs104.86 for four straight days.
During the week, the dollar on the interbank market gained three paisas against the rupee on WoW basis.
In the open market, the rupee/dollar parity showed a slight variation last week. During the week, the rupee moved in a narrow-range against the dollar as traders continued to remain on the sidelines, amid lack of buying interests.
The rupee shed 10 paisas and descended against the dollar to Rs105.90 and Rs106.10 in the first session from the prior weekend’s level of Rs105.80 and Rs106.00.
In the following two sessions, it held steady against the dollar as sufficient dollar inflows were available to meet the low market demand. In the second and third sessions, the parity continued to trade flat at Rs105.90 and Rs106.10 for three days.
In the fourth session, the rupee staged a recovery and posted a 10 paisas gain. As a result, the dollar drifted lower at Rs105.80 and Rs106.00.
In the last session, the parity remained unchanged at Rs105.80 and Rs106.00.
During the week, the dollar on the interbank market traded unchanged against the rupee in three sessions while it managed to gain and lose 10 paisas each in the remaining two sessions, maintaining a stable trend on WoW basis.
Against euro, the rupee remained under pressure, trading in wider range last week. Extending weekend weaknesses, the rupee commenced the week on a negative note and suffered a 90-paisa drop in the first trading session with euro changing hands Rs115.60 and Rs117.10 against the previous week’s closing of Rs114.70 and Rs116.20.
During the week, the rupee lost Rs3.05 against the euro on WoW basis. The euro has so far appreciated by 2.7pc against the rupee in the first three weeks of May.
Published in Dawn, The Business and Finance Weekly, May 22nd, 2017