Rupee turns in mixed performance
LAHORE: The rupee showed mixed sentiments against the dollar and euro in the local currency market last week. While it continued to weaken against the dollar owing to slight pressure, largely the trading range bound on the interbank market, the parity showed stable trend due to smooth dollar supply and traded almost flat amid low demand in the open market. Against euro the local currency recorded overall gains, trading in narrow ranges.
On the interbank market, the rupee commenced the week in minus against the dollar due to slight demand pressure. It posted 16 paisas and 17 paisas loss on the buying and selling counters at Rs104.69 and Rs104.73. The rupee extended its overnight weakness for the second straight day as it shed two paisas on the buying counter, while retaining overnight rate unchanged on the selling counter.
At the close of third session, the dollar surged to Rs104.79 and Rs104.81 against the rupee. In the fourth session as the rupee continued its downslide and closed at Rs104.81 and Rs104.83. In the fifth trading session, the rupee managed to recover two paisas on the buying three paisas on the selling counters closing the week at Rs104.79 and Rs104.80 against the dollar. During the week, the dollar on the interbank market gained 26 paisas on the buying and 24 paisas on the selling counters.
In the open market, the rupee posted a fresh gain of 10 paisas against the dollar which was changing hands at Rs105.80 and Rs106.00 in the first trading session against the previous week close of Rs105.90 and Rs106.10. In the second trading session, the rupee failed to hold the overnight firmness and slipped to its lowest in two weeks at Rs106.10 and Rs106.30, shedding 30 paisas against the dollar. The greenback rebounded against major currencies in overseas trade following an agreement between the world's top oil producers increased investors' appetite for risk.
However, the local currency managed to stage a recovery against the dollar in the third session, trimming overnight losses by 10 paisas with dollar receding to Rs106.00 and Rs106.20.
Sufficient dollar supplies matched demand in the fourth trading session. In the last trading session, the dollar lost 10 paisas allowing the rupee to close the week flat at Rs105.90 and Rs106.10 from the prior weekend's level. On a week-on-week basis the dollar did not show any change against the rupee in the open market last week.