Bullish trend was observed in the local currency market this week. The rupee resisted decline in the week’s last two trading sessions after improved dollar supplies released pressure on the local currency.

However, the dollar managed to cross Rs96 barrier.

On the interbank market, the rupee surrendered weekend gains on the back of strong dollar demand in the week’s opening session and crossed Rs96 barrier to hit new lows against the dollar at Rs96.00 and Rs96.02 after shedding 25 paisa on the buying counter and losing another 24 paisa on the selling counter in the first trading session. The dollar upward march continued in the second trading session as the rupee posted further losses amid strong dollar demand. It shed another 25 paisa on the buying counter and 28 paisa on the selling counter for the second straight day, pushing dollar to a new peak at Rs96.25 and Rs96.30.

However, after suffering 50 paisa loss against the dollar in the week’s first two trading sessions, the rupee managed to rebound, recovering partial losses in the week’s last two trading sessions after increased dollar inflows. The rupee picked up 20 paisa in the third trading session and further gained 20 paisa in the fourth trading session, pushing dollar at Rs95.85 and Rs95.90 ahead of early weekend. Market closed early this week on account of Allama Iqbal day on November 9. All banks and financial institutions were closed this being public holiday. During this week, the rupee still suffered 12 paisa loss against the dollar in the interbank market even after sufficient improvement in dollar supplies. The dollar had closed last week at Rs95.75 and Rs95.78.

In the open market, the dollar became a little hyper against the rupee and hit historic highs, crossing Rs96 barrier early this week. At one stage during the week it appeared as if the dollar will breach Rs97 barrier but the rupee was quick to intercept dollar’s upward march. The rupee shed 75 paisa in the first two trading sessions that pushed dollar to its highest levels at Rs96.50 and Rs96.70 at the close of the second trading session. Later in the week, it recovered partial losses against the dollar after demand normalised on the back of improved supplies. The rupee posted 30 paisa gain in the last two trading sessions as a result of which dollar dipped to Rs96.20 and Rs96.40 ahead of long weekend. During the week, however, the dollar appreciated by 55 paisa in the open market.

Versus the European single common currency, the rupee lost its weekend strength this week. It commenced the week on a positive note when euro slipped to Rs122.20 and Rs123.20 in the first trading session after the rupee picked up 20 paisa over last weekend’s levels of Rs122.40 and Rs123.40. In the following two trading sessions, the rupee assumed falling trend against euro, first slipping by 20 paisa at Rs122.40 and Rs123.40 in the second trading session and then posting 30 paisa loss before closing third trading session at Rs122.70 and Rs123.70.

The rupee in the last trading session rebounded sharply against the euro. It picked up 90 paisa before closing the week a day earlier at Rs121.80 and Rs122.80. This week, the rupee recovered 60 paisa against the European single common currency.

On the international front, based on Reuters daily forex reports, the euro fell to a near two-month low against the dollar on the week’s first trading session in New York, hittingas low as $1.2765, breaking below a reported options barrier at $1.2800 and stop loss sell orders at $1.2780 to mark its lowest since September 11. It was last at $1.2791, down 0.35 per cent on the day.

Against the Japanese currency, the dollar slipped 0.20 per cent to 80.28 yen, having hit a four-month high of 80.67 yen last weekend. Sterling fell 0.4 per cent to $1.5962 versus the dollar in London trade.

On November 6, trading in New York was subdued ahead of the results of the US presidential election. However, the euro hit a two-month low against the dollar before recovering to rise 0.2 per cent to $1.2816 after an early drop to $1.2761 on Reuters data, its lowest in two months. The dollar was up 0.1 per cent at 80.35 yen but below a six-month high of 80.67 yen hit on November 2. Against the dollar, the pound was steady at $1.5990 after falling 0.4 per cent a day earlier to hit a low of $1.5957 in London.

On November 7, the euro fell to a two-month low at $1.2734, but last traded down 0.4 per cent at $1.2761 against the dollar.

Against the yen, the dollar fell to as low as 79.76 yen, well below its six-month high of 80.67 hit last week and was last down 0.6 per cent at 79.86 yen. In London, sterling was down 0.1 per cent on the day at $1.5978, easing towards its two-week low of $1.5957 struck on November 5, and off a session high of $1.6043. Near-term support is seen at October 23 low of $1.5914.

On November 8, the euro fell to a two-month low against the dollar. It slid to $1.2716, the weakest since September 7, before recovering to $1.2744, down 0.2 per cent on the day. The currency has rallied nearly four per cent against the dollar since the beginning of August. The dollar slipped 0.76 per cent to 79.38 yen, staying below a six-month high of 80.67 yen set last week.

Against the dollar, the pound in London trade was flat at around $1.5980, recovering from an earlier two-week low of $1.5930.

At the close of the week on November 9, the euro dropped to a two-month low against the dollar, falling as low as $1.2688, the weakest since September 7. It was last down 0.3 per cent at $1.2708. Against the Japanese yen, the dollar fell to a three-week low of 79.06 yen, before recovering to 79.44 yen, little changed on the day.

Sterling hit a two-month low against the dollar in London trade, closing the week at $1.5903, down 0.5 per cent to its lowest since September 6.