THE rupee showed a firm trend against the dollar and euro amid lukewarm trading activity in the local currency market last week. Though demand for dollar existed in the absence of leading currency players, external inflows were sufficient to meet demand without pressurising the rupee.
Minor changes were witnessed in the rupee/dollar parity on the interbank market due to moderate demand but the parity traded range-bound between the high of Rs104.67/69 and the low of Rs104.70/72 in rupee term. Similarly in the open market, the rupee hovered in narrow ranges, moving against the dollar between the high of Rs105.20/40 and the low of Rs105.40/60.
Extending weekend gains, the rupee on the interbank market picked up two paisas in the first trading session with the dollar decelerating to Rs104.70 and Rs104.72 against the previous week close at Rs104.72 and Rs104.74. The rupee continued its upward march versus the dollar for the second straight day amid low demand, gaining three-paisa in the second trading session that pushed the dollar further down to near a two-week low at Rs104.67 and Rs104.69.
Snapping a two-day winning streak, the rupee posted two-paisa loss on the buying counter and one-paisa loss on the selling counter after the dollar managed to rebound in the third trading session. As a result, the dollar resumed slightly higher at Rs104.69 and Rs104.70.
The week ended flat at Rs104.69 and Rs104.70, showing no change in the rupee/dollar parity in the fifth trading session. During the week in review, the dollar in the interbank dealings suffered three paisas loss on buying counter and four paisas on the selling counter in rupee terms on a week-on-week basis amid low dollar demand and easy supply of the US currency in the market.
In the open market, the rupee commenced the week on a stable note trading flat against the dollar at Rs105.40 and Rs105.60 in the first trading session. In the second trading session, however, the rupee resumed marginally higher after posting five paisas gain and traded at Rs105.35 and Rs105.55.
The rupee further extended its overnight firmness against the dollar and surged to a fresh peak at Rs105.20 and Rs105.40, near a level last seen on December 9, 2015, after picking up 15paisas, the biggest single day rise in past four weeks.
In line with interbank, the rupee/dollar parity sustained its overnight levels in the last trading session at Rs105.20 and Rs105.40. On a week-on-week basis, the dollar in the open market thus suffered 20 paisas loss against the rupee last week.
Against euro, the rupee continued to trade in plus zone last week. It posted 20 paisas gain in the first trading session, changing hands at Rs119.10 and Rs120.10 against the last closing of Rs119.30 and Rs120.30.
In the last trading session, the rupee continued its downslide versus the dollar for the second straight day, losing 10 paisas before closing the week at Rs119.00 and Rs120.00. On a week-on-week basis, the rupee still retained its recent strength against euro as it posted net 30paisa gain last week.