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Rupee report: Euro strengthens against rupee

On the interbank market, a firm rising trend was witnessed last week with the rupee/dollar parity.

Trading in narrow band, the rupee commenced the week against the dollar in plus.

However, the week ended on a negative note, as the rupee in the last trading session posted two-paisa loss against the dollar after snapping four sessions winning streak, dragging the dollar slightly higher at Rs104.78 and Rs104.80.
In the open market, the demand and supply of dollar remained moderate last week

On week on week basis, the dollar on the interbank market showed a modest weakness against the rupee while the rupee still managed to post five-paisa gain on the buying counter and four-paisa gain on the selling counter during the week in review.

During 2016 so far, the dollar on the interbank market touched its highest level against the rupee at Rs104.93 and Rs104.95 on Jan 8 and its lowest level at Rs104.35 and Rs104.37 on Sep 9.

In the open market, the demand and supply of dollar remained moderate last week.

According to the forex dealers, besides sustained selling by banks and exporters in the interbank market, the dollar’s weakness against some currencies overseas backed up the rupee in the open market.

On week on week basis, the dollar posted 40paisa gain against the rupee in the open market.

During the week, the rupee/dollar parity traded between the high of Rs107.20/40 and the low of Rs106.50/70.
Chart by RA

The rupee has remained under pressure against the dollar since the start of 2016, hovering between the low of Rs107.60/90 and the high of Rs104.50/56.

At one point in the week ended Dec 3, the dollar even managed to cross Rs108 barrier against the rupee for a short while.

Over the past 12months ended Dec 9, the dollar in the open market has appreciated by 1.5pc against the rupee.

Versus euro, the rupee came under renewed pressure after turning negative last week.

Commencing the week in minus, the euro bounced back in the fourth trading session after the rupee failed to hold its overnight

firmness, and shed 50paisa, with euro changing hands at Rs114.80 and Rs116.30, its highest level in two weeks.

In the fifth trading session, the rupee rebounded sharply against euro. It posted a gain of Rs1.55, its largest single day rise in over a month before closing the week at Rs113.25 and Rs114.75.

During the week in review, the euro lost Rs2 against the rupee in two sessions while gaining Rs2.20 in three sessions.

On week on week basis, the rupee lost 25paisa against the euro.

courtesy : dawn news

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