IN the local currency market, the rupee hit record lows against the dollar which crossed Rs98 barrier in the interbank dealings and Rs100 barrier in the open market.

However, the rupee responded quickly to the SBP move to bring down dollar rate below Rs100 in the open market and also narrow the gap between the interbank and open market rates which has already crossed Rs2. In the interbank market, however, the rupee failed to resist its decline versus dollar and shed five paisa on the buying counter and three paisa on the selling counter on the week’s opening day to trade at Rs98.00 and Rs98.02 as against last week close of Rs97.95 and Rs97.99.

The rupee continued its downslide versus dollar in the second trading session when it last traded at Rs98.08 and Rs98.12 after losing eight paisa on the buying counter and another 10 paisa on the selling counter. The rupee extend its fall versus dollar in the third trading session, shedding two paisa on the buying counter and one paisa on the selling counter changing hands at Rs98.10 and Rs98.13. In the fourth trading session, however, the rupee managed to recover two paisa on the buying counter and three paisa on the selling counter at Rs98.08 and Rs98.10. But the rupee in the interbank market failed to hold overnight firmness against the dollar and shed two paisa at Rs98.10 and Rs98.12 in the last trading session.

In the open market, the dollar finally hit historic highs at Rs100 in the early session this week. The week commenced with the rupee sinking to its lowest levels against the dollar at Rs100.00 and Rs100.05 in the first trading session, down 20 paisa against previous weekend close of Rs99.80 and Rs99.85. The rupee, however, showed strong resistance against the dollar and rebounded sharply later in the session, posting up to 20 paisa gain before closing the session at Rs99.75 and Rs99.95 after the central bank move to lent support to the sinking rupee. It then traded in the positive zone for the rest of the week. In the second trading session, the rupee responded to SBP move and further recovered 25 paisa versus the dollar which was changing hands at Rs99.50 and Rs99.70.

The parity continued its upward march for the third straight day with the rupee climbing to Rs99.20 and Rs99.40, up 30 paisa against the dollar in the third trading session. The dollar further drifted lower in the fourth trading session as the rupee climbed to the week’s highest levels at Rs99.00 and Rs99.25 after picking up 20 paisa on the buying counter and 15 paisa on the selling counter. The rupee ended the week flat against the dollar, trading unchanged at Rs99.00 and Rs99.25 for the second straight day in the last trading session. During the week, the dollar in the open market lost 80 paisa against the rupee on the buying counter and 60 paisa on the selling counter.

Versus the European single common currency, the rupee rebounded sharply from two weeks’ historic lows and assumed a fluctuating trend this week. After hitting close to Rs137 some two weeks back, the euro is now trading in narrow ranges between Rs132 and Rs134 in the local currency market. The rupee extended its weekend firmness against euro in the first trading session of the week in review as it posted as it traded at Rs133 and Rs134 on the day, showing 110 paisa gain over the previous weekend’s levels of Rs134.10 and Rs135.10. The rupee further extended its overnight firmness for the second straight day, picking up 20 paisa against the euro which slipped to Rs132.80 and Rs133.80 in the second trading session.

In the third trading session, however, the rupee could not hold firm ground versus euro and posted 70-paisa loss in single day trading that helped euro climb to the highest levels in the past three sessions at Rs133.50 and Rs134.50. The rupee in the fourth trading session managed to recover partial losses, picking up 50 paisa on the buying counter and gaining another Rs1.25 on the selling counter, changing hands at Rs133.00 and Rs 133.25. In the last trading session, euro sank to the week’s lowest levels at Rs132.50 and Rs132.75 after the rupee posted fresh gain of 50 paisa. On-week-over week basis, the rupee managed to recover Rs2.30 against the euro this week.

On the international front, the euro rallied from nearly three-week lows while the yen plunged against the dollar in New York first trading session. The euro last traded up 0.4 per cent at $1.3414 after hitting a session high of $1.3427. It is down 1.2 per cent so far this month. Against the Japanese currency, the dollar touched as high as 94.42 yen, its highest level since May 2010 and was last at 94.35 yen, up 1.8 per cent. In London, sterling fell versus the dollar, down 0.7 per cent at $1.5685, off the previous weekend's high of $1.5845, which was its strongest since February 1.

On February 12, the yen rebounded against the dollar, rising from a nearly three-year low hit during the previous session. The dollar last traded at 93.54 yen, down 0.8 per cent on the day. The greenback has risen 7.8 per cent against the yen so far this year. The euro was up 0.3 per cent against the dollar at $1.3453. In London, sterling recovered from a six-month low against the dollar before paring some losses to last trade close to flat on the day at $1.5657. On February 13, the yen traded flat against the dollar, which was slightly down at 93.47 yen, below a three-year high of 94.42 yen on February 11. It lost nearly 20 per cent against the dollar between November and early February. The euro also traded flat at $1.3450. It has retreated from a 15-month high of $1.3711 hit at the start of February. Sterling fell to a six-month low against the dollar and hit a 15-month low in London trading session, down 0.7 per cent at $1.5553, having hit $1.5533, its lowest since early August 2012.

On February 14, the euro plunged to a three-week low against the dollar and last traded at $1.3356, down 0.7 per cent, after hitting a three-week low of $1.3313. It had hit a one-week high of $1.3520 a day earlier and a 15-month high of $1.3711 on February 1. Against the yen, the dollar was down 0.6 per cent at 92.87 yen, well below a 33-month high of 94.42 yen hit on the week’s opening day. Sterling hit a six-month low against the dollar in London where pound fell 0.4 per cent to $1.5482, its lowest since late July, before paring losses to last trade at $1.5520, down 0.2 per cent on the day.

At the close of the week on February 15, the euro last traded flat at $1.3358 while the dollar last traded at 93.64 yen, up 0.9 per cent in mid-day New York session, after earlier hitting a one-week low of 92.21 yen. It had set a 33-month high of 94.465 yen on February 11. In London, sterling was trading with touching distance of a 6-1/2 month low against the dollar it hit earlier in the day. It ended the day up 0.2 per cent at $1.5525, but was trading not far from $1.5462, which was its lowest since July 26.