The rupee tumbled versus US currency last week amid increasing demand for the greenback, experts said. In the interbank market, the rupee shed modestly but easy supply of dollars supported it to recover the lost value for buying and selling at Rs 59.72 and Rs 59.74, respectively.
The rupee also lost 15 paisa in relation to dollar for buying and selling at Rs 60.05 and Rs 60.15 in the open market. Versus euro, the rupee posted gain of 30 paisa for buying and selling at Rs 74.10 and Rs 74.30.
Market experts said that the rupee gave up its gains modestly but increased supply of dollars encouraged the rupee to limit its losses. The rupee recovered its losses due to export proceeds and remittances.
They rupee was not able to retain its firmness on increased demand for dollars due to higher payments after soaring oil prices in world markets.
WORLD OUTLOOK FOR DOLLAR VS MAJOR CURRENCIES: In the world markets, the dollar moved both ways. In the early sessions of the week, the US currency extended its gains versus major currency units in the Asian markets following the remarks by Federal Reserve member that the US interest rate hikes were on the way despite the impact of hurricane Katrina.
At the final session of the week, the dollar gave up most of its gains against leading currencies especially versus yen ahead of elections in Japan.
INTERBANK RATES: On Monday, the dollar was trading at Rs 59.71 and Es 59.73 for buying and selling.
On Tuesday, the rupee shed 3 paisa versus dollar for buying and Rs 59.74 and Rs 59.75, respectively. On Wednesday, the rupee gained one paisa against dollar for buying and selling at Rs 59.73 and Rs 59.74 as buying pressure eased slightly.
On Thursday, the rupee shed 2 paisa for buying and selling at Rs 59.75 and selling at Rs 59.76.
On Friday, the rupee did not show major change against dollar for buying and selling at Rs 59.74 and Rs 59.76. On Saturday, the rupee managed to gain 2 paisa against dollar in the interbank market for buying and selling at Rs 59.72 and Rs 59.74, respectively.
Strong supply position of dollars helped the rupee to recover lost ground and it seemed that the local currency was likely to retain its firmness in the coming days, experts said.
OPEN MARKET RATES: On September 5, the rupee did not show major change versus dollar at Rs 59.90 and Rs 60.00 for buying and selling. Versus euro, the rupee was trading at Rs 74.40 and Rs 74.60.
On September 6, the rupee lost 10 paisa versus dollar for buying and selling at Rs 60.00 and Rs 60.10 on dearth of greenbacks.
The rupee, however, shed 25 paisa against the single European currency for buying at Rs 74.15 and 20 paisa for selling at Rs 74.40.
On September 7, the rupee lost 5 paisa for buying and selling a dollar at Rs 60.05 and Rs 60.15, respectively. The rupee also lost 20 paisa versus euro for buying and selling at Rs 74.60 and Rs 74.80, respectively.
On September 8, the rupee shed 5 paisa in relation to dollar for buying and selling at Rs 60.10 and Rs 60.20. The rupee, however, rose by 30 paisa versus euro for buying and selling at Rs 74.20 and Rs 74.40 on falling value of the single European currency in world markets.
On September 9, the rupee managed to recover 5 paisa versus dollar for buying and selling at Rs 60.05 and Rs 60.15.
The rupee followed suit and gained five paisa against euro for buying and selling at Rs 74.15 and Rs 74.35. On September 10, steady trend was seen in the open market as the rupee did not show any change versus dollar for buying and selling at Rs 60.05 and Rs 59.15, respectively. The rupee also gained five paisa against the euro for buying and selling at 74.10 and Rs 74.30, dealers said.
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