No major gap was seen in the kerb and interbank rates for dollars last week as the rupee maintained its present levels in the absence of corporate demand, experts said.
In the beginning sessions of the week, the rupee crumbled versus the euro in the open market. Later, it recovered its ground.
In the kerb market, the rupee firmly held its present level against the dollar for buying and selling at Rs 57.30 and Rs 57.35, respectively, while versus the euro, the rupee gained 46 paisa for buying and selling at Rs 71.66 and Rs 71.96.
The rupee managed to hold its present level versus the dollar in the interbank market for buying and selling at Rs 57.28 and Rs 57.30, respectively.
Market sources said that trading activity was thin due to less demand for dollars, attributing the rupee's firmness to the completion of major payments, which did not allow the banks to make unusual dollars buying.
Commenting on euro's vulnerability, market pundits said that usually it depicts the global trend in the local market, adding that the single European currency slipped into negative territory in the local market after a sharp fall in terms of leading currencies in the world markets over concern that the European authorities might intervene to curb the euro's strength against the dollar.
Additionally, speculations that the Asian central banks would remain big buyers of the US debt was also a dominating factor for the euro's decline, they added.
Money experts observed that the single European currency also fell to a one-year low against the sterling as the pound benefited from higher interest rates in Britain relative to euro zone rates, saying that the interest rate differentials as well as the outlook for rates and economic growth differentials boosted the pound sterling and profit-taking was also a leading factor behind the single European currency's fall.
In the international markets, the dollar recovered versus the major currencies as several investors bought back the US currency, dealers said.
Comments from St. Louis Federal Reserve Bank President William Poole were that US economy was growing four percent to five percent this year. He said this should generate "significant increases" in employment.
Expectations of a rate-hike helped the sterling trade around 1.8937 dollars, up about 0.4 percent, they added.
UK retail sales rose at the fastest annual pace in more than a year in January, raising the likelihood of more Bank of England interest rate rises and further enhancing prospects for the sterling.
Commenting on continued firmness of the Japanese currency (yen) analysts said they believe the main rationale for a stronger yen was the strong domestic economy in Japan, adding that the Japanese economy is shaping up to be a lot stronger than people had imagined before some time back.
They observed and hoped that the yen may maintain its surge versus the dollar in the coming days.
In the meantime, they were of the opinion that the Japanese monitory team will keep a vigilant eye on its (yen) movement.
INTERBANK RATES: On Monday, the rupee-dollar parity rates did not show major difference in its week-end levels for buying and selling at Rs 57.31 and Rs 57.33, respectively.
According to market sources, the rupee sustained its last level as leading investors were on the sidelines due to the US market closure on account of the President Day holiday.
On Tuesday, the rupee shed two paisa versus the dollar for buying and selling at Rs 57.33 and Rs 57.35 amid lacklustre trading, respectively.
On Wednesday, the rupee maintained its overnight levels versus the dollar for buying and selling at Rs 57.33 and Rs 57.35, respectively.
On Thursday, balanced demand and supply helped the rupee to sustain its overnight levels in relation to the dollar for buying and selling at Rs 57.31 and Rs 57.33, respectively.
On Friday, the rupee recovered three paisa in terms of the dollar for buying and selling at Rs 57.28 and Rs 57.29, respectively.
On Saturday, the rupee held its prevailing levels versus the dollar for buying and selling at Rs 57.29 and Rs 57.30.
KERB MARKET RATES: On February 16, the rupee maintained its last levels versus the dollar for buying and selling at Rs 57.30 and Rs 57.35, respectively.
The euro, however, gained 10 paisa versus the rupee for buying and selling at Rs 72.88 and Rs 73.18.
On February 17, steadier trend was again seen in the kerb market as the rupee-dollar parity did not move any side on the buying and selling counters at Rs 57.30 and Rs 57.35.
The rupee, however, lost 45 paisa in relation to the euro for buying and selling at Rs 73.32 and Rs 73.62, respectively.
On February 18, the euro breached the barrier of Rs 74, losing 45 paisa for buying and selling at Rs 73.75 and Rs 74.05, respectively.
However, the dollar maintained its previous trend for buying and selling at Rs 57.30 and Rs 57.35.
On February 19, in line with the international trend, the euro's gain proved short-lived as it failed to sustain its level versus the rupee on Thursday, losing around one rupee for buying and selling at Rs 72.73 and Rs 73.03, respectively.
On February 20, the rupee did not show any change versus the dollar. It, however, lost 33 paisa in relation to the euro for buying and selling at Rs 72.40 and Rs 72.70.
On February 21, the rupee held its week's opening levels versus the dollar for buying and selling at Rs 57.30, respectively.
Dollars' availability encouraged the rupee to maintain its present levels, market men said.
Profit-taking pushed euro's value down in the open market as it shed 45 paisa further in relation to the euro for buying and selling at Rs 71.66 and Rs 71.96.
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