THE rupee’s losses against the dollar continued to mount last week, with the local currency touching the 103-mark against the reserve currency at one point. The rupee has depreciated by 0.3pc against the greenback in the interbank market so far this month.

The rupee commenced the week in the interbank market by dipping two paisas in the first trading session, sending the dollar up at Rs101.72 and Rs101.74, against the prior week’s close of Rs101.70 and Rs101.72. However, it regained two paisas in the second trading session, as the dollar reverted to Rs101.70 and Rs101.72.

But the local currency then shed 10 paisas in the third trading session, allowing the greenback to rise to Rs101.80 and Rs101.83. It lost another 25 paisas in the fourth trading session, as the dollar rose to Rs102.05 and Rs102.10 for the day. The rupee-dollar parity remained unchanged at this level in the last trading session.

The dollar appreciated by 35 paisas in interbank dealings and by 25 paisas in the open market last week.

The dollar appreciated by 35 paisas in the interbank market last week.

In the open market, the rupee started the week by shedding five paisas, sending the greenback up at Rs102.20 and Rs102.40 against the prior week’s close of Rs102.15 and Rs102.35. It lost another 10 paisas in the second trading session, enabling the dollar to rise to Rs102.30 and Rs102.50.

Independent reports said the rupee’s fall against the reserve currency was owing to higher dollar demand by importers.

The local currency lost a further 20 paisas in the third trading session, as the dollar ended the day at Rs102.50 and Rs102.70. However, it managed to regain 10 paisas in the fourth trading session, as the dollar slipped slightly to Rs102.40 and Rs102.60. The rupee-dollar parity remained unchanged at this level in the week’s last trading session.

Chart by RA

The dollar appreciated by 25 paisas in the open market last week. And the rupee has depreciated by 0.6pc in the open market so far this month.

Meanwhile, the rupee’s winning streak against the euro also came to an abrupt halt last week. It commenced the week by trading unchanged from the prior week’s close of Rs107.50 and Rs107.75.

However, the euro rose sharply by 75 paisas in the second trading session to end the day at Rs108.25 and Rs108.50. The single currency picked up a further 25 paisas in the third trading session and last changed hands at Rs108.50 and Rs108.75.

The rupee’s losing streak continued in the fourth trading session, as it lost another 75 paisas, sending the euro up at Rs109.25 and Rs109.50. It dropped by a further 75 paisas in the last trading session, as the euro closed the week at Rs109.50 and Rs109.75.

As a result, the euro appreciated by a big 250 paisas last week. However, the rupee is still up 4.2pc against the euro this month. The euro has lately been taking a battering against global currencies over concerns about Greece’s fiscal position.

Published in Dawn, Economic & Business, March 23rd, 2015

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