Adequate dollar supply in the local currency market led to an easing of pressure on the rupee, which rose for a second straight week against the greenback.
Some analysts reported that ample dollar supply also reduced speculative trading in the market to a great extent. The rupee has appreciated by 2.1 per cent against the dollar in the past two weeks.
Yet, all is not hunky dory, as the country’s total liquid forex reserves fell to about $8 billion in the week ended December 6, from $13.6 billion at the start of the year.
The rupee started last in the interbank market with a gain of 20-paisa on the buying counter and 21-paisa on the selling counter, as the dollar ended the first trading session at Rs108.20 and Rs108.22, against the prior week’s close of Rs108.40 and Rs108.43.
The rupee’s momentum continued into the second trading session, as it gained 45-paisa on the buying counter and 42-paisa on the selling counter, pushing the dollar down to Rs107.75 and Rs107.80.
The local currency then picked up 40-paisa against the dollar in the third trading session, as the greenback last traded at Rs107.35 and Rs107.40 on the day. The dollar then slipped by another five-paisa to close the fourth trading session at Rs107.30 and Rs107.35.
The rupee gained 10-paisa against the dollar in the last trading session, as the greenback ended the week at Rs107.20 andRs107.25. The local currency appreciated by Rs1.20 against the dollar in the interbank market last week.
The rupee commenced last week in the open market with a 10-paisa gain on the buying counter and five-paisa on the selling counter against the dollar, as the greenback ended the first trading session at Rs107.70 and Rs107.90, against the previous week’s close of Rs107.80 and Rs107.95.
The dollar suffered another 20-paisa loss in the second trading session and last traded at Rs107.50 and Rs107.70.
The rupee then picked up 40-paisa against the dollar, which closed the third trading session at Rs107.10 and Rs107.30.
The local currency then shed five-paisa against the dollar on the buying counter but picked up five-paisa on the selling counter, as the greenback ended the fourth trading session at Rs107.15 and Rs107.25.
The rupee ended the week with a five-paisa gain against the dollar, which closed the last trading session down at Rs107.15 and Rs107.20.
The dollar depreciated by 75-paisa against the rupee in the open market last week.
The rupee also gained strength against the euro, as it managed to gain a cumulative 25-paisa against the European single currency. It ended the week at Rs147.25 and Rs147.50, against the prior week’s close of Rs147.50 and Rs147.75.
