Though stocks extended gains kept the bullish sentiments live, maintaining its record high level during the week as budgetary measures invited a fresh wave of buying in the selected shares, a weakening dollar against some currencies overseas amid a higher opening in domestic equities in the week’s initial sessions kept the rupee rising kept the rupee rising.
Workers’ remittances sent by overseas Pakistanis continued to surge and posted over 5pc growth during the first 11 months of FY2016. Besides, higher inflows under home remittances ahead of Eid-ul-Fitr and strict SBP monitoring to stabilise domestic currency, provided support to the rupee. Consequently, the rupee hit a fresh six-month high against the dollar in the interbank dealings.
On the interbank market, the rupee continued to rule firm against the dollar for the second consecutive week. Commencing the week in plus, the rupee inched up by one-paisa on the buying counter and held its weekend rate unchanged on the selling counter in the first trading session. It traded in relation to the dollar at Rs104.64 and Rs104.65 against the last closing of Rs104.63 and Rs104.65.
The local currency showed a rising trend versus the dollar and euro last week
During the week in review, however, the dollar lost 41 paisas on the buying counter and 40 paisas on the selling counter against the rupee on week on week basis.
In the open market, the rupee continued its upward advancement against the dollar for the fourth successive week.
Extending weekend firmness, it moved up by another 20 paisas to Rs104.90 and Rs105.10 in the first trading session from the prior weekend’s level of Rs105.10 and Rs105.30 amid higher foreign inflows.
In the same week, the dollar in the open market lost 50 paisas against the rupee on week on week basis. However, the rupee has depreciated against the dollar by 1.8pc over the past 12 months. The dollar was at Rs102.75 and Rs102.95 on June 10, 2015.
Against the euro, the rupee turned positive last week after trading in negative in the preceding week and hovered in tight ranges.
The rupee rebounded sharply, gaining 70 paisas in the first trading session after shedding Rs2.40 in the previous week and traded at Rs118.30 and Rs119.30 against the previous week close at Rs119 and Rs120.
It closed the week higher at Rs117.75 and Rs118.75, bringing cumulative gain against euro to Rs1.25 in the week.
The euro, however, gained Rs1.15 amid fluctuations over the past two weeks and appreciated by 1.82pc against the rupee in the past twelve months. The rupee was at Rs115.65 and Rs116.65 against euro on June 10, last year.