THE rupee in the local currency market showed divergent trends against the dollar while it continued to fluctuate against the euro last week.
Leading currency dealers kept to the sidelines. Some demand for dollar existed but easy capital inflows were sufficient to balance the demand. However, few analysts fear that slight pressure could build up on the rupee in coming months due to weakening of macroeconomic indicators. Pakistan’s exports are facing major challenge due to recession in the international market and decrease in commodity prices.
Trading between the high of Rs104.64/66 and the low of Rs104.68/70, the rupee/dollar parity moved in narrow ranges on the interbank market last week. The rupee resumed lower against the dollar at Rs104.67 and Rs104.70 in the first trading session. It, however, turned positive in the second trading session, inching up by one paisa at Rs104.66 and Rs104.69 amid selling of the dollars by some exporters.
The dollar slipped to the week’s lowest level at Rs104.64 and Rs104.66 in the third session. However, the rupee turned negative against the dollar in the fourth trading session that enabled the dollar to climb to Rs104.68 and Rs104.70.
During the week, the rupee moved at comfortable level as demand for the dollars fell flat. The dollar in the interbank dealings, however, posted two paisas gain on a week-over-week basis as the rupee resisted sharp fall.
Dollar suffers fresh losses in the open market
In the open market, the rupee/dollar parity continued to show a stable trend for the third straight week, mostly trading range-bound. The parity commenced the week unchanged over the week close, trading flat at Rs105.60 and Rs105.80 in the first and second sessions owing to slack demand for the foreign exchange from importers.
In the third trading session, the dollar slipped to a six-week low at Rs105.50 and Rs105.70, a level last seen on Feb 8. The dollar continued its downslide in the fourth session as the rupee picked up another 10 paisas hitting a fresh peak of this calendar at Rs105.40 and Rs105.60. The dollar in the open market, however, suffered 70 paisa loss against the rupee on a week-on-week basis due to lower importers’ demand.
Against euro, the rupee remained fluctuated after commencing the week in plus. It posted 20 paisa gain against the euro, which slipped to Rs116.90 and Rs117.90 in the first trading session from the prior weekend’s level of Rs117.10 and Rs118.10. In the second trading session, however, the local currency staged a recovery of 10 paisas at Rs116.80 and Rs117.80. In the third trading session the euro managed to post 20 paisa gain at Rs117.00 and Rs118.00.
In the fourth trading session, the rupee shed Rs1.30, the biggest single day fall in the past five weeks.
During the week, the rupee lost Rs1.45 against the euro in three sessions while gaining 40 paisa in two sessions. The euro still managed to gain Rs1.05 against the rupee on a week-on-week basis.
Courtesy : Dawn News