Dull trading in currency market
THE rupee/dollar parity showed mixed trends in the local currency market this week.
The rupee continued its depreciation against the dollar in the interbank dealing where it remained traded in narrow band between Rs94.45 and Rs94.65, while it managed to stage some smart recoveries in open market where dollar remained depressed and traded between Rs95.50 and Rs96.10.
Demand for dollar existed in the market but there were fewer buyers and the supplies were enough to meet low demand.
During the week, however, the rupee continued its downtrend versus dollar in the interbank market where dollar was seen changing hands at Rs94.45 and Rs94.50 in the first trading session after the rupee lost 10 paisa on the buying counter and another 12 paisa on the selling counter against last week close of Rs94.35 and Rs94.38. The rupee downslide persisted in the second trading session. It shed five paisa on the buying counter and three paisa on the selling counter and traded at Rs94.50 and Rs94.53 against the dollar.
The rupee slipped by 10 paisa in the third trading session and was changing hands at Rs94.60 and Rs94.63, its lowest level during the week. The rupee managed to hold overnight level against the dollar for the second day in a row as it traded unchanged at Rs94.60 and Rs94.63 in the fourth trading session.
In the fifth trading session, the rupee remain unchanged on the buying counter but shed two paisa on the selling counter and closed the week against the dollar at Rs94.60 and Rs94.65.
During the week, however, the rupee in the interbank dealings suffered up to27 paisa loss against the dollar.
In the open market, the rupee traded firm against dollar this week. Demand and supply of dollar was almost in balance amid quiet trading. No hectic buying of dollar was observed in the market during the week.
In the first trading session, the rupee gained 10 paisa and traded versus dollar at Rs95.80 and Rs96.00, its lowest level during the week. It extended its overnight firmness against the dollar, picking up 20 paisa at Rs95.60 and Rs95.80 in the second trading session.
The rupee further drifted higher against the dollar for the third consecutive day and posted fresh gain of 10 paisa in the third trading session, pushing dollar to the week’s lowest level at Rs95.50 and Rs95.70.
In the fourth trading session, however, the rupee, after picking up 40 paisa in the first three trading sessions, gave up firmness and shed 20 paisa against the dollar, changing hands at Rs95.70 and Rs95.90.
It, however, managed to recover 10 paisa in the last trading session with dollar trading at Rs95.60 and Rs95.80 at the close of the week. During the week, the rupee in the open market shed 30paisa against the dollar. The dollar had closed last week at Rs95.90 and Rs96.10.
Versus the European single common currency, the rupee this week remained escalated between Rs118.30/ Rs119/30 and Rs119.20/ Rs120.20 after hitting Rs121 in the previous week. No major development was observed in the market amid dull trading.
The rupee mostly traded in the positive zone as euro dipped up to three weeks low against the dollar in the international financial market during the week. The week commenced on a positive note with the rupee appreciating sharply by Rs1.20 in terms of euro which was seen changing hands at Rs118.80 and Rs119.80 in the first trading session as against last week close of Rs120.00 and Rs121.00.
In the second trading session, the rupee, however, dipped by 40 paisa and traded at Rs119.20 and Rs120.20 against euro. It managed to recover overnight losses in the third trading session as it posted 40 paisa gain, pushing euro back to the opening week’s position at Rs118.80 and Rs119.80.
The rupee extended its overnight firmness against euro in the fourth trading session, trading at the week’s highest level at Rs118.30 and Rs119.30, up 50 paisa from previous day close.
But then it fell by 90 paisa in the last trading session before closing the week against euro at Rs119.20 and Rs120.20. On week over week basis, the rupee reflected 80 paisa recovery against euro this week.
On the international front, the euro slipped to an almost two-week low against the US dollar in the New York first trading session this week, falling as low as $1.2469, the weakest since June 12, and was last down 0.6 percent at $1.2501. Against the yen, the dollar fell 1 percent at 79.63 yen. Sterling was down 0.17 percent at $1.5565 against the dollar in London trade.
On June 26, the euro fell to its lowest against the dollar in more than two weeks at $1.2440 according to the Reuters data, the weakest since June 8. It came off the day’s low to trade at $1.2497, down 0.1 per cent. The dollar fell 0.3 percent to 79.46 yen, off an eight-week high of 80.59 hit on June 25. Sterling was steady against the dollar at $1.5582, in London trade.
On June 27, the euro fell for a third day against the dollar, down 0.2 per cent at $1.2468, though off a two-week low of $1.2440 hit on June 26, a level seen as providing strong technical support. Against the yen, the dollar was 0.3 per cent higher at 79.74 yen, but below a two-month high of 80.59 yen hit earlier this week. In London, the pound fell 0.4 per cent against the dollar to $1.5575 as caution before the summit supported the safe-haven US currency.
On June 28, the euro slipped against the dollar for a fourth straight day and touched the lowest in more than three weeks at $1.2405, the weakest since June 4. It was last down 0.2 per cent at $1.2449. The dollar fell to a one-week low against the yen around 79.21 yen helped by month-end selling by Japanese exporters. It was last down 0.4 per cent at 79.41 yen. Against the dollar, the pound reversed earlier gains to fall 0.3 per cent to $1.5520 in London, its lowest in two weeks.
At the close of the week on June 29, the euro was on track for its best day against the dollar in eight months. It rose as high as $1.2692, the strongest since June 21, and was last at $1.2660, up 1.8 per cent. The dollar rose 0.5 per cent to 79.81 yen but was on track for a quarterly loss of 3.5 per cent, also the largest since September. Sterling rallied against the dollar in London trade.
It rose more than one per cent to $1.5705, its highest level in a week.