IN the local currency market, the rupee this week was seen in recovery phase. Technical correction and low demand for dollar in the absence of major payments, amid quiet trading, helped the rupee rebound sharply against dollar.
The rupee this week regained partial strength over dollar, rising as high as Rs93.75/93.80 in the interbank market and Rs94.50/95.0 in the open market.
In the interbank dealings, the week commenced on a positive note as the rupee continued its weekend firmness, resisting further decline against dollar.
It traded at Rs94.00 and Rs94.05 in the first trading session on June 18, up 35 paisa on the buying counter and 32 paisa on the selling counter over the previous weekend’s levels of Rs94.35 and Rs94.37.
The rupee further gained against dollar in the second trading session, picking up 25 paisa and hitting the week’s highest levels at Rs93.75 and Rs93.80.
The rupee, however, lost firm ground amid rising dollar demand in the third trading session and was changing hands versus dollar at Rs94.25 and Rs94.27 after losing 50 paisa on the buying counter and also shedding 53 paisa on the selling counter on June 20.
The rupee extended its overnight weakness in the fourth trading session as it drifted lower, slipping by five paisa and traded at Rs94.30 and Rs94.32 on June 21.The rupee downslide versus dollar persisted in the last trading session. The rupee shed five paisa on the buying counter and six paisa on the selling counter, ending the week at Rs94.35 and Rs94.38 against the dollar. In the interbank dealings, the rupee on week over week basis, however, traded almost unchanged against the dollar.
Mixed sentiments were witnessed in the open market this week.
The rupee was seen in recovery stage. After hitting historic lows against dollar at over Rs96 last week, it resisted further decline this week and did not allow the dollar to breach Rs97 barrier. The rupee commenced the week on a positive note.
It traded against the dollar at Rs95.40 and Rs95.90 after picking up 60 paisa on the buying counter and another 40 paisa on the selling counter in the first trading session. Last week, the dollar had closed at Rs96.00 and Rs96.30 and many currency dealers were expecting it to climb to Rs97 this week.
In the second trading session, the rupee further gained 90 paisa and traded at Rs94.50 and Rs95.00, the week’s highest levels against the dollar.
But in the following two trading sessions the rupee lost ground versus dollar and assumed downward trend against the dollar. It drifted lower in the third trading session, slipping by 60 paisa on the buying counter and shedding another 50 paisa on the selling counter before closing at Rs95.10 and Rs95.50.
In the fourth trading session, the dollar climbed further to Rs95.40 and Rs95.80 after the rupee posted fresh loss to the tune of 30 paisa over the preceding day. Persistent dollar demand pushed the dollar further in the last trading session.
The rupee shed 40 paisa on the buying counter and 20 paisa on the selling counter before closing the week at Rs95.80 and Rs96.00. On week over week basis, the dollar in the open market, however, lost 20 paisa this week.
Versus the European single common currency, the rupee this week remained fluctuated in narrow band. It moved both ways, trading between the high of Rs118.80 on the buying counter and low of Rs121.20 on the selling counter after commencing the week on positive note. It picked up 50 paisa in the first trading session, changing hands against euro at Rs119.50 and Rs120.50 as against previous weekend’s Rs120.00 and Rs121.00. The rupee further extended its overnight firmness as it posted 70 paisa gain in the second trading session to trade versus euro at Rs118.80 and Rs119.80, its highest level during the week.
In the third trading session, however, the rupee failed to hold its past two days’ firmness versus euro and hit the week’s lowest level at Rs120.20 and Rs121.20 after shedding 70 paisa over the previous day close. But in the fourth trading session, it gave up its overnight losses and recovered 70 paisa to trade at Rs119.50 and Rs120.50.
The rupee closed the week on a negative note, trading against euro at Rs119.80 and Rs120.80 after shedding 30 paisa in the fifth trading session. During the week in review, the rupee on net basis recovered 20 paisa against euro.
On the international front, the euro fell from a one-month high against the dollar in New York first trading session, down 0.5 percent at $1.2576, off a one-month high of $1.2747 hit in Asia. The dollar rose 0.5 percent to 79.09 yen. In London, the pound slipped against the dollar, down 0.3 percent at $1.5660, retreating from a two-week high hit on June 15. Offers were cited at around $1.5730.
On June 19, the euro rallied against the US dollar, rising 0.9 per cent to $1.2683 after hitting a session high of $1.2730, partly helped by demand in the Middle East. Support is seen around $1.2536, the trend line drawn below daily lows from June 1.