This week in the last trading session, panic dollar buying forced the rupee to dive to its lowest level in almost four years.
A strengthening dollar against major currencies in overseas market in coming months could force the government to devalue the rupee. The IMF has already recommended rupee devaluation.
Meanwhile, last week on the interbank market, the rupee/dollar parity traded almost stable, hovering in the range of Rs105.51/52 and Rs105.54/55.
The dollar recorded an abrupt rise against the rupee on Friday after the rupee reportedly hit almost a four year low
Commencing the week in minus the rupee on Monday drifted against slightly lower at Rs105.51 and Rs105.52 against the last closing at Rs105.50 and Rs105.51.
On Tuesday, the dollar changed hands at Rs105.52 and Rs105.54 on slight pickup in dollar demand.
On Wednesday, the rupee extended its overnight weakness against the dollar while on Thursday the rupee further slipped to Rs105.54 and Rs105.55.