No major development was observed last week in the local currency market where dull trading activities dominated in the absence of importer interest.

Leading currency dealers also showed a lack of interest and remained in the sidelines.

On the interbank market, the rupee last week showed a firm trend am id lackluster dollar demand and normal supplies.

It managed to recover 39paisa in four sessions after commencing in the week in minus. The week ended on a strong note as the rupee recovery process persisted in the last trading session. It posted 26paisa gain on the buying counter and 23paisa gain on the selling counter in the fifth trading session.

Consequently, the dollar to rupee exchange rate further weakened and the dollar tumbled to 38-week lows at Rs104.43 and Rs104.48 at the close of the week.

The dollar tumbled to 38-week lows at the close of the week

On week on week basis, the dollar depreciated by 0.36pc against the rupee on the interbank market last week. In Aug alone, the rupee appreciated by 0.6pc against the dollar.

In the open market, the rupee leapt higher against the dollar last week, posting sharp gains of 60paisa in five trading sessions. As a result, the dollar tumbled to a seven-week low against the rupee in the week.

The dollar downslide against the rupee persisted in the last trading session. The rupee extended overnight gains by five-paisa that pushed the dollar further down at Rs105.45 and Rs105.65 at the close of the week, near a level last seen on July 22.

During the week in review, the dollar in the open market depreciated by 0.6pc against the rupee on week over week basis after showing a stable trend for several weeks.

Strength in the dollar against some other currencies overseas weighed on the rupee but healthy foreign fund inflows amid low dollar demand largely supported the rupee.

Against euro, the rupee traded with a positive bias last week after several weeks of range-bound fluctuations.

The rupee showed mixed sentiments against euro as the parity was seen moving both ways in the last trading session.

It posted 20paisa loss on the buying counter and at the same time gained five-paisa on the selling counter before closing the week at Rs117.00 and Rs118.25.

During the week, euro lost Rs1.40 in three sessions and gained 40paisa in two sessions on the buying counter.

On the selling counter, at the same time, it lost Rs1.30 in four sessions and gained 30paisa in one session. But on week over week basis, the rupee managed to recover 100paisa against the euro last week.

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