Euro gains against rupee In the domestic market, the rupee remained stable against the dollar though some demand existed in the market.
Dollar selling by exporters and sufficient foreign exchange availability released some pressure on the rupee last week. Weaker dollar in the international market also restricted rupee fall in the domestic market.
Nevertheless, the rupee is still trading at a seven-week low against the dollar and a four-month low against the euro.
In overseas trade, on the other hand, the dollar inched higher but was set for a more than one-per cent loss against all its major peers on the week, weighed down by investors’ lack of belief in the chances of a rise in US interest rates this year.
All of the major currencies were trading in tight ranges.
On the interbank market, the rupee last week traded both ways against the dollar, moving in a narrow band amid minor variations.
In the open market, the rupee/dollar parity remained unchanged during the week
Extending weekend losses in the first trading session, the rupee shed five-paisa on the buying counter and four-paisa on the selling counter that drifted the dollar slightly higher at Rs104.70 and Rs104.71 against the last closing of Rs104.65 and104.67.
The market witnessed slight pressure on the rupee due to the rise in dollar demand for Hajj payments.
The rupee closed the week flat, trading unchanged at Rs104.70 and Rs104.72 for the second consecutive day in the fifth trading session.
During the week, the dollar in the interbank market managed to appreciate against the rupee amid modest variations. Over the past three weeks of August so far, the rupee has lost 16paisa against the dollar.
In the open market, the rupee/dollar parity showed a steady trend throughout last week after losing 20paisa against the dollar in the previous week when the dollar hit almost a seven-month peak against the rupee at Rs106.20 and Rs106.40, a level last seen on February 4.
The rupee commenced the week flat at Rs106.20 and Rs106.40. The parity remained unchanged in the rest of the week and traded flat at Rs106.20 and Rs106.40 in the next four straight sessions following dull demand from corporate and private sector.
Against euro, the rupee continued to fluctuate, trading in a broad range.
Turning negative in the week’s opening session, the rupee posted 25paisa loss in the first trading session that dragged the euro higher at Rs118.25 and Rs119.25 against the prior weekend’s level of Rs118.00 and Rs119.00.
The rupee closed the week against the euro on a positive note. In the last trading session, it managed to pick up ten-paisa at Rs119.30 and Rs120.30 as the dollar stumbled close to eight-week lows against the euro.
Amid continuous fluctuations versus euro, the rupee in the local market posted Rs1.65 loss in three sessions and at the same time gained 35paisa in two sessions during the week, bringing week on week loss against euro to Rs1.30.