The rupee displayed all-round weakness against both the dollar and the euro last week, despite the positive end of the country’s periodic IMF review.
Some analysts attributed the rupee’s drop against the dollar to heightened demand of the reserve currency from importers and some banks.
In the interbank market, the rupee commenced the week by shedding six paisas, sending the greenback up at Rs101.81 and Rs101.83 in the first trading session, against the prior week’s closing level of Rs101.75 and Rs101.77.
In the second trading session, the rupee managed to inch up by one-paisa for buying and two paisas for selling, as the dollar dipped to Rs101.80 and Rs101.81. However, the rupee slipped by two paisas in the third trading session, sending the dollar to Rs101.82 and Rs101.83.
The rupee-dollar parity remained unchanged for buying in the fourth trading session, but the rupee inched down by one-paisa for selling, with the dollar last changing hands at Rs101.82 and Rs101.84.
The dollar appreciated by 18 paisas in interbank dealings and by 25 paisas in the open market
The rupee then lost 11 paisas in the last trading session, as the dollar closed the week at Rs101.93 and Rs101.95. The dollar appreciated by 18 paisas against the rupee on the interbank market last week.
In the open market, the local currency started the week by losing five paisas, allowing the greenback to end the first trading session at Rs102.40 and Rs102.60, against the prior week’s close of Rs102.35 and Rs102.55.
The rupee shed another five paisas in the second trading session, sending the dollar up at Rs102.45 and Rs102.65. This was followed by another five-paisa loss for the rupee, with the dollar ending the day at Rs102.50 and Rs102.70 in the third trading session.
The dollar then gained 10 paisas in the fourth trading session to end the day at Rs102.60 and Rs102.80. The rupee-dollar parity then remained unchanged at this level in the last trading session.
As a result, the greenback appreciated by a sizable 25 paisas against the rupee in the open market last week.
Meanwhile, the rupee’s recent weakening trend against the euro continued last week. Yet, the local currency had commenced the week on a positive note, picking up 50 paisas to send the euro down to Rs113.75 and Rs114.00, against the previous week’s close of Rs114.25 and Rs114.50.
However, the single currency bounced back in the second trading session, regaining 75 paisas to end the day at Rs114.50 and Rs114.70. The rupee lost another 50 paisas in the third trading session, allowing the euro to end the day at Rs115.00 and Rs115.25.
The euro then gained a big 165 paisas in the fourth trading session and sent the rupee down at 116.65 and 116.90.
But the local currency managed to recover 40 paisas in the last trading session, as the euro closed the week at Rs116.25 and Rs116.50. During the week, the rupee lost a net 200 paisas against the euro.