Rupee rules firm against dollar

Divergent trends were witnessed in the local currency market last week. Confused over the future oil price trends most of the currency dealers adopted a waitand-see policy and kept to the sidelines.

In January 2016, the rupee depreciated against the dollar by 0.1pc on the interbank market and by 0.5pc in the open market. Some analysts fear that the local currency could depreciate to fresh lows against the greenback in coming months. However, no significant changes were witnessed in the rupee/dollar parity last week on the interbank market.

The rupee traded almost unchanged against the dollar in the interbank dealings amid lacklustre demand throughout the last week after commencing the first trading session at Rs104.94 and Rs104.95, unchanged against the dollar from the previous weekend level.

After trading flat at Rs104.94 and Rs104.95 for the four successive sessions, the rupee in the last trading session staged a recovery posting four paisas gain on the buying and three paisas on the selling counters before closing the week at Rs104.90 and Rs104.92. Both the demand and supply of dollar remained in balance.

Analysts are of the opinion that fall in international oil prices would keep the greenback demand on lower side. On weekover-week basis, the dollar depreciated against the rupee by 0.04pc on the interbank market last week. In the open market, minor changes were witnessed during the week with the rupee trading against the dollar between the high of Rs106.20/50 and the low of Rs106.30/60. It commenced the week in negative mode as it posted 10 paisas loss in the first trading session at Rs106.20 and Rs106.50.