IN the local currency market, the rupee this week moved both ways against the dollar and euro amid process trading. Dollar supply and demand currently remains in balance.

The rupee in recent sessions has successfully resisted the dollar from breaching Rs95 barrier despite the fact that the week commenced on a negative note, with the rupee sharply losing 17 paisa on the buying counter and 15 paisa on the selling counter against the dollar at Rs94.67 and Rs94.70 in the first trading session as against previous week close of Rs94.50 and Rs94.55.

The rupee extended its overnight weakness against the dollar for the second consecutive day, shedding nine paisa on the buying counter and ten paisa on the selling counter in the second trading session. The dollar was at Rs94.76 and Rs94.80 at the close of the day, up 27 paisa in the two trading sessions.

After remaining weak in the first two trading sessions, the rupee managed to rebound against the dollar in the third trading session when it posted fresh gains of eight paisa on the buying counter and 10 paisa on the selling counter, pushing dollar back to the opening week’s level at Rs94.68 and Rs94.70.

In the fourth trading session, the rupee overnight firmness persisted against the dollar as it appreciated by six paisa on the buying counter and four paisa on the selling counter pushing dollar slightly lower at Rs94.62 and Rs94.66 and brining cumulative gains in the last two trading sessions to 14 paisa. Finally, the rupee ended the week on a stable note as it remain unchanged at Rs94.62 and Rs94.66 against the dollar for the third straight day in the fifth trading session.

During the week in review, however, the dollar in the inter-bank market recovered 12 paisa in relation to the rupee.

In the open market, the rupee showed mixed sentiments versus dollar this week. No major activity was observed in the market and the rupee traded almost flat against the dollar.

However, dollar climbed slightly higher towards the close of the week but remained range bound, trading between Rs94.70/90 and Rs94.75/95. The week commenced on a negative note as the rupee shed five paisa against the dollar in the first trading session and pushed dollar slightly higher at Rs94.70 and Rs94.90. The dollar had closed last week at Rs94.65 and Rs94.85.

The rupee firmly held its overnight firmness against the dollar in the second trading session after trading unchanged at Rs94.70 and Rs94.90 for the second day in a row but it slightly drifted lower in the third trading session, slipping by five paisa against the dollar to its lowest level during the week at Rs94.75 and Rs94.95. It, however, rebounded moderately in the fourth trading session, posting five paisa gain in relation to the dollar at Rs94.70 and Rs94.90.

The rupee traded unchanged for the second successive day at Rs94.70 and Rs94.90 in the fifth trading session, ending the week flat in relation to the dollar. On week over week basis, however, the dollar in the open market managed to recover five paisa in rupee term this week.

Versus the European single common currency, the rupee showed a fluctuating trend this week. The week commenced on a happy note as the rupee gained ten paisa in the first trading session, pushing euro slightly lower at Rs118.10 and Rs119.10 from last weekend’s level of Rs118.20 and Rs119.20.

But the rupee opening week’s firmness proved short lived as it failed to hold its overnight positive move against euro in the second trading session when it fell sharply, losing 40 paisa at Rs118.50 and Rs119.50 in single day trading.

In the third trading session, however, the rupee again bounced back against the euro, recovering 20 paisa to trade at Rs118.30 and Rs119.30.

In the fourth trading session, euro managed to regain its firmness, climbing to Rs118.60 and Rs119.60 after the rupee posted 30 paisa decline against the European single common currency.

In the last trading session, euro retain its upward march in relation to the rupee for the second consecutive day as the rupee posted 90 paisa loss and breached Rs120 barrier before closing the week at Rs119.50 and Rs120.20, its lowest level during the week. Versus the European single common currency, the rupee lost Rs1.30 and 70 paisa respectively on the buying and selling counters during the week in review.

On the international front, US markets were closed for Labour Day holiday on September 3.

However, the euro steadied against the dollar on Asian first trading session at $1.2579, flat from late US levels and off an eight-week peak of $1.2638 set last weekend.

The dollar was also under pressure against the yen. It last stood at 78.29 yen, near the three-week low of 78.187 yen hit on July 31. In London, sterling rose to its highest in nearly two weeks against the dollar to $1.5906 from around $1.5868, before stalling near strong technical resistance at $1.5912, the August 23 high. It was last trading at $1.5885, up 0.15per cent.

On September 4, the euro hovered near a two-month high against the dollar in New York. It was flat on the day at $1.2590, not far from two-month high of $1.26378 hit last week.

The dollar was, however, firmer against the yen and was up 0.2per cent at 78.40 yen. Sterling hit a two-week high against the dollar at $1.5910 but stalled at strong resistance around the August 23 high of $1.5912. It was last trading close to flat at $1.5883 in London.

On September 5, the euro was up 0.3per cent at $1.2602, heading back toward a two-month high of $1.2636 touched last weekend. It has risen from a two-year low of $1.2040 in late July. The dollar was steady at 78.42 Japanese yen. In London, sterling rose to a 3-1/2 month high against the dollar to $1.5933, its highest level since mid-May, and was last up 0.3per cent at $1.5915.

On September 6, the euro hit a two-month peak against the US dollar, rising by 0.3percent to $1.2634 for a second straight session, off the session low at $1.2559.

It remained within its recent 10-day range against the dollar. Against the yen, the dollar was last up 0.6per cent at 78.90 yen, with a session peak of 79.02 yen. Sterling was close to flat against the dollar at $1.5902 in London trade, retreating from previous day’s 3-1/2 month high of $1.5940.

At the close of the week on September 7, the dollar fell to a near four month low against the euro and a one month low against the yen. The euro rose as high as $1.2806, its strongest since late May, knocking out reported option barriers at $1.2660 and $1.2700.

It last traded at $1.2782, up 1.2per cent. The dollar fell by 0.9per cent to 78.10 yen, with the low at 78 yen. Sterling hit a four-month high against a weak dollar, rising to a four-month high of $1.6010 in London trade.