AFTER maintaining a steady fall against the dollar over the past couple of weeks, the rupee managed to pull back slightly in the second half of last week.
However, some analysts cautioned that the change had more to do with the central bank’s intervention than anything else. They added that if the central bank stopped ‘influencing’ the exchange rate, the rupee would easily fall past the 102-mark against the dollar.
In the interbank, the rupee commenced the week by suffering a loss of five paisas for buying and six paisas for selling, which took the greenback to Rs101.88 and Rs101.92 against the prior week’s close of Rs101.83 and Rs101.86.
The rupee shed a further four paisas for buying and two paisas for selling in the second trading session, sending the dollar up at Rs101.92 and Rs101.94.
However, the rupee managed to reverse the downward trend and regained four paisas in the third trading session to end the day at 101.88 and 101.90.
The rupee appreciated by around four paisas against the dollar in interbank dealings and remained unchanged in the open market last week
It rose by another three paisas in the fourth trading session, as the dollar slipped to Rs101.85 and Rs101.87. The rupee picked up a further five paisas in the last trading session, as the dollar closed the week at Rs101.80 and Rs101.82.
As a result, the dollar depreciated by three paisas for buying and four paisas for selling in the interbank market last week.
At the start of the week in the open market, the rupee-dollar parity remained unchanged at the prior week’s close of Rs101.80 and Rs102.00.
However, the rupee dropped by 20 paisas in the second trading session, allowing the greenback to go up to Rs102.00 and Rs102.20. But it regained 10 paisas in the third trading session, as the dollar slipped to Rs101.90 and Rs102.10.
The local currency picked up another 10 paisas in the fourth trading session, as the dollar dropped back to Rs101.80 and Rs102.00. The rupee-dollar parity then remained unchanged at this level in the week’s last trading session. Thus, the rupee remained unchanged against the dollar in the open market on a net basis.
Meanwhile, the euro continued its slump against the rupee. Yet, it had started the week by gaining 35 paisas to settle at Rs114.10 and Rs114.35 in the first trading session, against the prior week’s close of Rs113.75 and Rs114.00.
But the euro slipped back to Rs113.75 and Rs114.00 after the rupee regained 35 paisas in the second trading session. The local currency picked up another 50 paisas in the third trading session, as the euro ended the day at Rs113.25 and Rs13.50.
The rupee then rose by 75 paisas in the fourth trading session, sending the euro down to Rs112.50 and Rs112.75. The rupee then closed the week by gaining another 75 paisas, as the euro dipped to five-year lows of Rs111.75 and Rs112.00. The euro depreciated by a net 200 paisas last week.