In the local currency market, the rupee managed to restrict sharp fall amid a strong demand for the greenback this week.

However, it continues to be under pressure. It has already hit historic lows versus the dollar and euro and is currently trading in the range of Rs99.00 and Rs99.40 against the dollar and Rs131.29 and Rs132.70 against euro. Analysts still see dollar at Rs100 in coming days.

The week in review was shortened to four days operation as the government declared January 25 as public holiday on account of Eid Milad-un-Nabi.

The currency market lacked trading interest in the last two trading sessions as market participants were busy in making preparations for Eid Milad-un-Nabi celebrations before the early weekend.

In the interbank market the week commenced on a negative note as the rupee surrendered its weekend gains versus dollar and posted three-paisa loss on the buying counter and two-paisa loss on the selling counter in the first trading session, pushing dollar to Rs97.73 and Rs97.74.

In the second trading session, the rupee inched up by three-paisa on the buying while retaining its overnight level on the selling counter with dollar changing hands at Rs97.70 and Rs97.74.

The rupee further extended its overnight gains versus dollar in the third trading session, picking up one-paisa on the buying counter and two-paisa on the selling counter at Rs97.71 and Rs97.72.

The rupee finally ended the week on a positive note as it managed to gain eight paisa on the buying counter and another six paisa on the selling counter, pushing dollar to the week’s lowest level at Rs97.63 and Rs97.66 in the fourth trading session.

There was lack of interest in dollar buying in the last session.

No panic buying was seen amid thin trading. Markets were partially closed due to local holiday declared by the provincial government of Sindh on January 24.

Overall, in the four trading sessions this week, the rupee in the interbank dealings gained eight paisa against the dollar over last weekend’s Rs97.70 and Rs97.72.

In the open market, analysts were expecting the dollar to cross Rs100 this week.

However, the rupee did not allow the dollar to hit that peak and it remained traded in narrow ranges, amid fluctuations, between Rs99.00 and Rs99.40.

The rupee commenced the week on a negative note, drifting lower by 25-paisa versus the greenback which traded at Rs99.15 and at Rs99.35 in the first trading session after closing the previous week at Rs98.90 and Rs99.10.

The rupee further shed five-paisa against the greenback in the second trading session, changing hands at week’s lowest levels at Rs99.20 and Rs99.40.

In the third trading session, the dollar lost its overnight firmness to the rupee which rebounded sharply after two straight days of losses, gaining 20-paisa at Rs99.00 and Rs99.20.

Due to lack of interest in trading activities ahead of early weekend, the parity retained its overnight levels in the fourth trading session and closed the week unchanged for the second day in a row at Rs99.00 and Rs99.20.

This brings net loss in the rupee value to 10 paisa against the dollar in the open market this week.

Versus the European single common currency, the rupee traded mixed, moving either ways this week.

However, the downward pressure remained dominated on the rupee with the euro currently riding all-time high.

After closing last week at Rs131.20 and Rs132.20, the rupee commenced this week on a negative note, shedding 10 paisa against the euro at Rs131.30 and Rs132.30 in the first trading session.

It further drifted lower in the second trading session, slipping by 40-paisa to hit the week’s all time lows at Rs131.70 and Rs132.70 on January 22.

However, after posting 50-paisa loss in the first two trading sessions, the rupee staged a rebound versus euro and appreciated by 20-paisa in the third trading session, changing hands at Rs131.50 and Rs132.50.

Thin trading was observed on January 24 as the market participants were busy in making preparations for Eid Milad-un-Nabi celebrations.

The rupee posted 10-paisa gain before closing the week at Rs131.40 and Rs132.40 in the fourth trading session. Due to early closure, themarket operated for four days this week.

Despite 30-paisa gain in the rupee value in the last two sessions, the euro gained 30-paisa on week-over-week basis On the international front, US markets were closed for the Martin Luther King Jr. holiday.

In Tokyo, euro was almost flat on the day at $1.3325, having been capped by the $1.34 level in the past week and facing strong resistance just under $1.35.

Against the Japanese currency, the dollar rose as high as 90.25 yen, its highest level since June 2010, before closing the day at 89.53 yen.

In London, the pound was last down 0.2 per cent at $1.5840, having touched a low of $1.5831 against the dollar.

On January 22, the yen soared one per cent against the dollar as dollar slipped by 0.9 per cent at 88.74 yen.

The dollar had risen to 90.06 yen immediately after the Bank of Japan’s decision, not far from its two-and-a-half-year high of 90.25 yen, but later retreated.

The euro recovered versus the dollar in New York’s second trading session but the dollar was little changed at $1.3317.

In London, the pound was up 0.3 per cent on the day at $1.5874, holding above a five-month low of $1.5807 struck on the week’s first trading session.

On January 23, the yen traded flat at 88.68 yen, retreating from a two-and-a-half-year high of 90.25 yen set on January 21.

The dollar has risen about 10 per cent against the yen since mid-November. The euro was little changed against the dollar, at $1.3317.

In London, sterling recovered from a near five-month low against the dollar and was up 0.1 per cent at $1.5850, bouncing back from $1.5802, its lowest in nearly five months.

On January 24, the euro extended gains against the dollar, hitting session’s high of $1.3392 and last changed hands at $1.3385, up 0.5 per cent.

The dollar extended its gains against the yen and was on track for its best day since October 2011, rising as high as 90.25 yen and matching a two-and-a-half-year peak set on January 21.

It was last up 1.8 per cent at 90.17yen. Against the dollar, the pound fell by 0.5 per cent to $1.5757, hitting a five-month low in London trade.

At the close of the week on January 25, the euro climbed 0.6 per cent to $1.3453, after rising to $1.3479, its highest level since late last February. For the week, it gained about 1.2 per cent.

The dollar rose as high as 91.19 yen, the strongest since June, 2010 and was last up 0.6 per cent at 90.88 yen. On the week, the dollar rose about one per cent versus the yen, and has gained every week versus the yen since the week ended November 11.

In London, sterling hit a five-month low against the dollar, falling to $1.5745, its lowest since late August last year, from around $1.5810 beforehand.