Baqar HussainTHE rupee remained volatile against the dollar in both the interbank and open markets last week, as trading was restricted to three days.
On the interbank market, the rupee commenced the week by losing 19 paisas reportedly owing to a strong demand for the dollar. The reserve currency ended the first trading session at Rs104.92 and Rs104.94 against the prior week’s close of Rs104.73 and Rs104.75.
However, the rupee managed to recover four paisas for buying and 10 paisas for selling in the second trading session, as the dollar slipped to Rs104.85 and Rs104.90.
The dollar appreciated by five paisas against the rupee in both the interbank and the open markets last week
The rupee continued its upward march in the third trading session, when it recorded fresh gains of seven paisas for buying and 10 paisas for selling. The greenback thus closed the week at Rs104.78 and Rs104.80.
As a result, the dollar appreciated by a net five paisas against the rupee in the interbank market last week. But the rupee is up 0.69pc against the dollar so far this month, according to independent reports.
Meanwhile, trading remained suspended on Thursday and Friday owing to public holidays on account of Eid Miladun Nabi (PBUH) and Quaid-e-Azam’s birth anniversary respectively.
A similar pattern was observed in the open market, where the rupee began the week by losing 10 paisas for buying and 15 paisas for selling, with the dollar ending the first trading session at Rs106.20 and Rs106.50 against the prior week’s close of Rs106.10 and Rs106.35.
However, the rupee bounced back in the second trading session and regained 10 paisas, sending the dollar down to Rs106.10 and Rs106.40. The rupee-dollar parity then remained unchanged at this level in the week’s third and final trading session.
As a result, the dollar gained five paisas against the rupee in the open market for selling but remained unchanged for buying on a net basis last week. The local currency is up 0.9pc against the greenback so far this month, according to independent reports.
The rupee stayed equally volatile against the euro last week. It commenced the week by gaining 20 paisas in the first trading session, as the euro dropped to Rs115.20 and Rs116.20 against the prior week’s closing level of Rs115.50 and Rs116.50.
However, the euro bounced back in the second trading session and picked up 60 paisas, ending the day at Rs115.80 and Rs116.80. The rupee’s losses extended into the third trading session, where it shed another five paisas, allowing the single currency to close the week up at Rs115.85 and Rs116.85.
As a result, the euro appreciated by a net 35 paisas last week. Meanwhile, the European single currency has reportedly appreciated by a big 2.5pc in the first four weeks of December.
Syed Zaki Hussain
