The rush for clearance of import bills pushed the demand for dollars higher in the currency market last week, money experts said. In the interbank market, the rupee gained 8 paisa versus dollar at Rs 60.18 and Rs 60.20 for buying and selling, respectively, dealers said.
However, in the open market, the rupee shed 28 paisa versus dollar for buying and selling at 60.70 and 60.75, respectively, dealers said. The rupee rose by 12 paisa in relation to euro for buying and selling at Rs 75.93 and Rs 76.03.
According to market sources, the rupee shed some gain in the open market after higher dollar demand by the corporate sector. They said that the rupee might lose more ground before the end of the fiscal year, but added that the rupee would be able to resist sharp decline due to easy supply of dollars.
GLOBAL SCENARIO: In the early sessions of the week, the dollar gained ground versus yen on a surprise over the narrowing of US current account gap. Expectations of further rise in US interest rate also boosted dollar value in the world markets.
Later in the week, the dollar eased versus leading currencies as markets refocused on when the Bank of Japan (BoJ) would end its zero-interest rate policy.
Another development, which pushed the dollar down versus yen and euro, was the comments by European Central Bank (ECB) chief Trichet, raising expectations for further increase in the interest rate in Euro Zone. The ECB chief hinted that the economy in the Euro Zone was showing some promising signs and the inflation was rising which indicated that the ECB might raise the interest rate.
At the weekend, the dollar maintained its firmness on expectations of rise in the interest rates.
OPEN MARKET RATES: On Monday, the rupee lost 5 paisa in relation to dollar for buying and selling at 60.42 and 60.47. The rupee gained 15 paisa versus euro for buying and selling at Rs 76.05 and Rs 76.15.
On Tuesday, the rupee lost 8 paisa versus dollar for buying at 60.50 and 13 paisa for selling at 60.60 in sympathy with the track in the interbank market.
The rupee shed five paisa versus euro for buying and selling at 76.00 and Rs 76.10.
On Wednesday, the rupee lost 15 paisa for buying at 60.65 in a single day slide and sliding 10 paia for selling at 60.70.
The euro shrugged of the weakness versus rupee, recovering 40 paisa for buying and selling at Rs 76.40 and Rs 76.50.
On Thursday, the rupee maintained the overnight level against dollar for buying at 60.65 while it lost five paisa for selling at 60.75.
The euro extended its overnight gains, picking up 24 paisa for buying and selling at Rs 76.64 and Rs 76.74, respectively.
On Friday, the rupee lost four paisa in relation to the greenback for buying and selling at 60.69 and 60.79, moneychangers said.
The rupee held its firmness versus euro, gaining 31 paisa for buying and selling at Rs 76.23 and Rs 76.33.
On Saturday, the rupee moved both ways versus dollar for buying and selling at 60.70 and 60.75.
The rupee managed to gain 30 paisa versus euro for buying and selling at Rs 75.93 and Rs 76.03.
INTERBANK RATES: On June 19, the rupee was trading at 60.26 and 60.28, dealers said. On June 20, the rupee did not show any change in its overnight levels for buying and selling at 60.26 and 60.28, dealers said.
On June 21, the rupee-dollar parity rates did not budge to any side for buying and selling at 60.26 and 60.28 for the third day in the interbank market on Wednesday, dealers said.
On June 22, the rupee reacted positively versus dollar, gaining one paisa for buying and selling at 60.25 and 60.27, dealers said.
On June 23, the rupee maintained its gains versus dollar in the interbank market, picking up four paisa for buying and selling at 60.21 and 60.23, dealers said. On June 24, the rupee picked up three paisa versus dollar for buying and selling at 60.18 and 60.20, dealers said on Saturday.
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