Rupee remains range-bound
In the local currency market, the rupee remained under pressure against the dollar last week. The central bank tightened some foreign exchange management rules to check outflows and stabilise the rupee.
On the interbank market, the rupee traded largely stable against the dollar. The rupee shed one paisa on the buying counter and two paisa on the selling counter against the dollar on Monday.
The dollar drifted slightly higher, changing hands against the rupee at Rs115.60 and Rs115.62 against the last closing at Rs115.59 and Rs115.60.
On Tuesday, the rupee retained weekend rate on the buying counter, but fell one paisa on the selling counter. The dollar showed little change at Rs115.60 and Rs115.61 at the close of the session.
The parity was unchanged on Wednesday when the rupee traded flat against the dollar at Rs115.60 and Rs115.61.
In the open market, the dollar suffers 40 paisa loss on the buying counter and 30 paisa loss on the selling counter
On Thursday, the rupee retained overnight rate against the dollar on the buying counter but lost one paisa on the selling counter to trade at Rs115.60 and Rs115.62.
On Friday, the rupee continued to trade flat at Rs115.60 and Rs115.62 at the close of the week. The dollar on the interbank market gained up to two paisa against the rupee on week-on-week basis.
In the open market, the rupee continued to be under downward pressure. The rupee traded flat on Monday retaining weekend rate at Rs116.20 and Rs116.60. On Tuesday, the rupee managed to pick up 10 paisa against the dollar following dull demand.
The dollar drifted lower slightly to Rs116.10 and Rs116.50. On Wednesday, the rupee retained its overnight rate and traded against the dollar flat at Rs116.10 and Rs116.50.
The rupee, however, turned negative on Thursday against the dollar, losing 20 paisa. The dollar surged to fresh highs at Rs116.30 and Rs116.70 at the close of the session.
On Friday, the rupee lost 30 paisa on the buying counter and 20 paisa on the selling counter, closing the week at Rs116.60 and Rs116.90.
During the week, the dollar in the open market suffered 40 paisa loss on the buying counter and 30 paisa loss on the selling counter against the rupee on week-on-week basis.
Against the euro, the rupee lost 50 paisa on the buying counter while retaining weekend rate on the selling counter on Monday.
The rupee tumbled to fresh lows on Tuesday. On Wednesday, the euro surged to the historic peak against the rupee, trading at Rs143.00 and Rs144.50.
On Thursday, the euro it slipped to Rs142.60 and Rs144.40. On Friday, the rupee lost 20 paisa on the buying counter but gained 10 paisa on the selling counter, trading at Rs142.80 and Rs144.30 at the close of the week.
Published in Dawn, The Business and Finance Weekly, April 16th, 2018