Rupee makes sharp gains versus euro
LAHORE: The rupee moved both ways with minor changes against the dollar in the local currency market last week. A little pick-up in dollar demand to cover imports and corporate payments amid a firm opening of domestic equities exerted downward pressure on the rupee.
However, the suspected SBP intervention through state-owned banks also kept it cheery towards the week's closing sessions. On the interbank market, the rupee commenced the week in minus as it continued its incessant fall against the dollar, extending weekend losses by dropping four paisas on the buying counter and three paisas on the selling counter to end at a fresh four month low at Rs104.85 and Rs104.86 against the last closing at Rs104.81 and Rs104.83. Reversing its overnight losing run, the rupee in the second trading session managed to recover five paisas on the buying counter and four paisas on the selling counter at Rs104.80 and Rs104.82 against the dollar. In the last trading session, the rupee failed to hold firm ground versus the dollar and posted four paisas loss on the buying and three paisas on the selling counter before closing the week slightly lower at Rs104.84 and Rs104.85 against the dollar. On a week-on-week basis, the rupee suffered up to three paisas loss against the dollar on the interbank market.
In the open market, the rupee came under renewed demand pressure. It suffered the biggest single- day loss against the dollar in the past 13 weeks, losing 30 paisas at Rs105.40 and Rs105.60 against the last closing of Rs105.10 and Rs105.30. Continuing its downward movement for the second straight day, the rupee further drifted lower by 10 paisas in the second session, hitting almost a three- and- a half month low at Rs105.50 and Rs105.70. A weakening dollar against other currencies overseas and a higher opening in the domestic stock market amid sustained dollar demand weighed on the rupee that kept the rupee firm and resulted in 10 paisas recovery against the dollar. On a week- on- week basis, however, the dollar in the open market posted 30 paisas gain against the rupee. --