IN the local currency market last week, State Bank measures to check dollar outflows stabilised the rupee.

Last week on the interbank market, the rupee/dollar parity moved both ways in a tight range. The rupee lost 20 paisa on the buying counter and 18 paisa on the selling counter on Monday due to higher dollar demand from importers.

The dollar climbed to its highest levels in two weeks, changing hands at Rs124.23 and Rs124.25 on Monday against the last closing at Rs124.03 and Rs124.07. On Tuesday, the rupee continued to trade at Rs124.23 and Rs124.25.

On Wednesday, the rupee picked up one paisa on the buying counter and another two paisa on the selling counter before closing the session at Rs124.22 and Rs124.23 against the dollar.

On Thursday, the rupee gained 27 paisa on the buying counter and 23 paisa on the selling counter, pushing the dollar to Rs123.95 and Rs124.00. On Friday, the rupee further gained five paisa on the buying counter and another eight paisa on the selling counter, hitting its highest level in the past four weeks.

The dollar slipped, hitting a 10-day low at Rs121.30 and Rs122.50 on Friday

It was seen changing hands against the dollar at Rs123.90 and Rs123.92 at the close of the week.

In the open market on Monday, the parity retained its weekend rate and traded flat at Rs122.50 and Rs123.50. The rupee lost 20 paisa on Tuesday, pushing the dollar slightly higher at Rs122.70 and Rs123.70.

The rupee on Wednesday picked up 20 paisa. The dollar drifted lower to close the session at Rs122.50 and Rs123.50. The rupee’s upward trend persisted on Thursday as the dollar slipped to Rs121.50 and Rs122.50.

The dollar slipped hitting a ten-day low at Rs121.30 and Rs122.50 on Friday. During the week in review, the dollar in the open market posted Rs1.20 loss against the dollar on week on week basis.

Against euro, the rupee last week traded firmly in a tight range between Rs134.40/139.50 on the buying counter and Rs142.50/143.50 on the selling counter.

The rupee recovered 100 paisa against the euro on the selling counter on Monday at Rs138.50 and Rs142.50 against the previous week close at Rs138.50 and Rs143.50.

On Tuesday, however, the rupee shed 100 paisa on the buying counter and another 75 paisa on the selling counter. At the close of the session, the euro was seen changing hands slightly higher at Rs139.50 and Rs143.25.

The parity did not show any change on the buying counter on Wednesday where the rupee retained overnight rate. It lost 25 paisa on the selling counter with the euro trading at Rs139.50 and Rs143.50.

Published in Dawn, The Business and Finance Weekly, August 13th, 2018