In the local currency market, the rupee continued to show a firm trend against the dollar due to insignificant dollar demand in the absence of major currency players.
The central bank meanwhile continued to provide dollars to commercial banks for meeting importer demand.
Despite a slowdown in remittances and wider trade and current account deficits, the State Bank has managed to keep the interbank dollar rate stable and has not allowed the rupee to fall beyond Rs104.85/85 since past couple of months.
On the interbank market, the rupee/dollar parity showed a firm trend, trading range-bound last week.
As market participants appeared reluctant to take fresh positions, the rupee traded flat against the dollar, retaining its weekend level unchanged at Rs104.85 and Rs104.86 in the first trading session.
As market participants appeared reluctant to take fresh positions, the rupee traded flat against the dollar in the interbank market
The rupee closed the week flat after retaining its overnight levels unchanged at Rs104.84 and Rs104.85 amid dull activity in the last trading session.
On week on week basis, however, the dollar on the interbank market posted one-paisa loss against the rupee.
In the open market, the rupee tracked some sharp gains against the dollar last week.
There was less than normal demand while supply was sufficient thus making it easy for the rupee to resist a fall.
After trading in the range of Rs107.00/Rs107.20 and Rs107.80/Rs108 against the dollar for almost eight weeks, the rupee rebounded sharply and commenced the first trading session with a 20paisa gain amid a comfortable supply of dollars.
As a result, the dollar lost firm ground and dipped to fresh lows in 2017, changing hands at Rs106.80 and Rs107.00.
However, the rupee failed to hold its week long firmness, turning negative against the dollar.
It suffered a 30paisa loss, its biggest one-day fall in the past five weeks, before closing the week at Rs106.50 and Rs106.70.
During the week in review, the dollar in the open market lost 80paisa against the rupee in the three sessions and gained 30paisa in one session. It, thus suffered a net loss of 50paisa on week on week basis.
Versus euro, the rupee continued to show a firm trend after the week commenced on a positive note and hovered in narrow range between the high of Rs111.50/Rs113.00 and low of Rs112.75/Rs.114.25.
In the last trading session, the rupee downslide against the euro persisted for the second day in a row.
Extending overnight weakness, it posted 85paisa loss, which was its biggest single day fall in the past three weeks.
At the close of the week, the euro became slightly expensive, changing hands at Rs112.60 and Rs114.10 against the rupee.