IN the local currency market, the dollar continued its upward advancement in relation to the rupee amid low trading activity. Though dollar was seen close to Rs96, the rupee did not allow dollar to break the psychological barrier last week.

On the interbank market, the week commenced on a negative note. Versus the dollar, the rupee was seen shedding eight paisa on the buying counter while holding the weekend levels unchanged on the selling counter in the first trading session. The dollar moved slightly higher and traded at Rs95.54 and Rs95.58 in the first session this week.

The rupee further lost one paisa on the buying counter but was unchanged for the second straight day on the selling counter in the second trading session. It was last changing hands at Rs95.55 and Rs95.57on October 9. The rupee, however, showed slight improvement in the third trading session as it managed to pick up five paisa against the dollar at Rs95.50 and Rs95.52 on October 10. In the fourth trading session, it retained its overnight rate on the buying counter but shed two paisa on the selling counter and traded against the dollar at Rs95.50 and Rs95.54 on October 11.

In the last trading session, the rupee did not show any variation on the buying counter but shed one paisa on the selling counter before closing the week against the dollar at Rs95.50 and Rs95.55 on October 12. During the week in review, the dollar in the interbank market gained four paisa on the buying counter but lost three paisa on the selling in rupee term on net basis.

Against the dollar, the rupee had closed previous week at Rs95.46 and Rs95.58. In the last ten months, however, the dollar has appreciated by 5.5percent against the rupee. The dollar was at Rs90.25 and Rs90.30 on January 12, 2012.

In the open market, the rupee/dollar parity showed mixed sentiments. Dollar made quite a few attempts to touch Rs96 barrier but the rupee successfully restricted dollar attempts though it remained traded in a higher band this week. The rupee travelled in the positive zone against the dollar posting five paisa gain in the opening session of the week in review. The dollar slipped from previous weekend’s levels of Rs95.45 and Rs95.65 and it last traded at Rs95.40 and Rs95.60. The rupee further shed ten paisa and helped the dollar climb to Rs95.50 and Rs95.70 in the second trading session.

The rupee/dollar parity retained its overnight levels and traded unchanged at Rs95.50 and Rs95.70 for the second successive day in the third trading session. In the fourth trading session, the rupee drifted marginally lower, losing five paisa against the dollar which was last seen changing hand at Rs95.55 and Rs95.75. At the close of the week, the rupee recovered its lost ground in relation to the dollar and posted five paisa gain at Rs95.50 and Rs95.70 in the last trading session. The dollar in rupee term traded higher by 0.05percent in the open market this week and 4.6percent higher in the ten months to January 13 when dollar was at Rs91.20 and Rs91.50.

Versus the European single common currency, the rupee this week remains escalated between the high of Rs122.30/123.30 and low of Rs123/124. The week commenced on a happy note as the moved in the positive direction, picking up 60 paisa against euro which traded at Rs123 and Rs124 in the first trading session after closing last week at Rs123.60 and Rs124.60. The parity remained stable in the second trading session, retaining its overnight levels unchanged for the second straight day. The rupee extended its overnight firmness against euro in the third trading session. It picked up 70 paisa and climbed to the week’s highest levels at Rs122.30 and Rs123.30.

In the fourth trading session, the rupee failed to hold firm ground against euro any further. It suffered 30 paisa loss and pushed euro slightly lower at Rs122.60 and Rs123.60. The week ended on a negative note as the rupee further lost 60 paisa and traded against the euro in the last trading session at Rs123.20 and Rs124.20. However, euro lost 40 paisa against the rupee on week on week basis but posted a gain of Rs8.38 over the past ten months. The rupee was at Rs115.20 and Rs115.82 in relation to euro on January 13 this year.

On the international front, the euro slipped from a two-week high against the dollar in the New York first trading session, falling 0.5percent to $1.2973. It had hit a two-week high of $1.3071 last weekend. The dollar fell 0.4percent to 78.32 yen after reaching a session peak of 78.87 yen on October 5. In London, the pound fell to a one-month low against the dollar. It was down 0.6percent at $1.6035, having fallen to a one-month low of $1.6021 and also retreating from a one-week high of $1.6218 hit last weekend.

The euro continued its downslide against the dollar and fell 0.7percent to $1.2880 in New York second day trading, well below a two-week high of $1.3071 hit last week. However against the yen, the dollar slid 0.1percent to 78.22 yen, moving further away from a two-week high of 78.87 attained last week. Sterling fell to a one-month low against the dollar in London, down 0.2percent to $1.5991, its weakest since September 11. That took it well below a peak of $1.6310 hit in late September.

The euro was little changed against the dollar at $1.2881 on October 11. It last traded down 0.2percent at $1.2863 in New York. Against the yen, the dollar rose 0.1percent to 78.27 yen. Sterling inched up in London after three straight days of losses had pushed it to a one-month low against the dollar. It was marginally higher on the day at $1.6015, having fallen to $1.5975 on October 9, its weakest since September 10.

On October 11, the euro rose against the dollar, snapping three-day decline and climbed 0.4percent to $1.2924 in New York.

The yen weakened broadly. Against the dollar, it fell by 0.2percent to 78.32 yen. Sterling edged higher against the dollar in London trade, up 0.2percent to $1.6029, inching further away from a one-month low of $1.5975 hit on October 9, its weakest since September 10.

At the close of the week on October 12, the euro rose against the dollar to $1.2969 in early New York trade, up 0.3 percent on the day but down 0.4percent week-on-week. The dollar hit a high of 78.53 yen, recovering from previous day’s 10-day low against the Japanese currency of 77.92 yen. It was last up 0.1percent at 78.37 yen. Sterling was up 0.2percent at $1.6078 against the dollar in London, holding above one-month low of $1.5975 hit on October 9 but below the peak of $1.6310 reached in late September.