DUE to an increase in demand of foreign currencies, the rupee posted losses against the dollar and the euro last week. After gaining sharply in March, the rupee has been on a downward journey since mid-April.

Last week on the interbank market, the rupee posted a 13-paisa loss in the first trading session, as the dollar ended the day at Rs98.67 and Rs98.69, against the prior week’s close of Rs98.52 and Rs98.54.

The local currency shed 13 paisas for buying and 10 paisas for selling as the greenback ended the second trading session at Rs98.80 and Rs98.85. The rupee posted a further loss of five paisas for buying and two paisas for selling, pushing the dollar up at Rs98.85 and Rs98.87 in the third trading session.

The rupee stayed unchanged for buying but shed three paisas for selling, as the dollar ended the fourth trading session at Rs98.85 and Rs98.90.

The dollar appreciated by 32 paisas in the interbank and by nearly 50 paisas in the open market last week

In the last trading session, the rupee picked up one paisa for buying, but lost four paisas for selling. As a result, the dollar closed the week at Rs98.84 and Rs98.86. The greenback gained 32 paisas in interbank dealings last week.

Chart by RA

Higher dollar demand kept the rupee under pressure in the open market as well. The local currency started the week with a loss of five paisas, as the dollar ended the first trading session at Rs99.25 and Rs99.45, against the prior week’s close of Rs99.20 and Rs99.40.

The rupee then posted losses of 10 paisas for buying and five paisas for selling, pushing the dollar up to Rs99.35 and Rs99.50 in the second trading session. The dollar gained another 15 paisas for buying and 10 paisas for selling to end the third trading session at Rs99.50 and Rs99.70.

Chart by RA

The local currency dipped by another 15 paisas in the fourth trading session, as the dollar climbed up to Rs99.65 and Rs99.85. In the last trading session, the rupee shed five paisas for buying but stayed unchanged for selling, as the greenback closed the week at Rs99.70 and Rs99.85. The dollar gained 50 paisas for buying and 45 paisas for selling in the open market last week.

Meanwhile, the rupee traded unchanged against the euro at the prior week’s closing level of Rs136.00 and Rs136.25 in the first two trading sessions last week.

But it posted a 25-paisa loss in the third trading session, as the single currency went up to Rs136.25 and Rs136.50.

However, the rupee regained 25 paisas in the fourth trading session, as the euro went back to the Rs136.00 and Rs136.25 level. But the rupee ended up shedding 50 paisas in the last trading session, as the euro closed the week at Rs136.50 and Rs136.75.

Published in Dawn, Economic & Business, May 26th, 2014