The rupee shed some gains versus dollar last week due to high demand for the US currency by banks to clear import payments at the closing of the current fiscal year, money experts said.
Payment requirements dragged the rupee into the negative territory, giving up 15 paisa versus dollar in the interbank market for buying and selling at Rs 60.20 and Rs 60.25, respectively.
In the open market, the rupee fluctuated sharply but managed to trim some losses versus the greenback for buying and selling at Rs 60.46 and Rs 60.52, respectively, dealers said. The rupee followed suit versus euro and ended the week at Rs 76.70 and Rs 76.80, for buying and selling, respectively, they said.
According to market analysts, the rupee managed to limit its losses as the supply of dollars eased, but it might shed more ahead of the budget 2006-07.
Importers' demand for dollars may also push the rupee down in the interbank market, but the firm trend in remittances might ease pressure on the rupee, they added.
WORLD SCENARIO: In the international markets, the dollar managed to gain versus yen and euro on rising expectations about increase in interest rates by the Federal Reserve Bank in its meeting next month.
In the middle of the week, the dollar gave up its weakness and looked forward amid emerging uncertainties about world political and economic outlook. At closing session, the dollar moved both ways versus major currency units.
INTER-BANK MARKET: On Monday, the rupee extended its weekend falling trend versus dollar, losing six paisa for buying and selling at 60.05 and 60.07.
On Tuesday, the rupee shed 4 paisa against the greenback for buying and selling at 60.09 and 60.10, respectively. Market sources said that dollar supply was good but high demand for the US currency did not provide any chance to the rupee to look ahead.
In the meantime, they said, if the corporate demand persisted, the rupee was likely to show further slide.
On Wednesday, the rupee continued its overnight fall versus dollar, slipping 7 paisa for buying at 60.16 and 8 paisa for selling at 60.18.
On Thursday, the rupee lost 2 paisa versus dollar for buying and selling at 60.18 and 60.20, respectively.
On Friday, the rupee lost 2 paisa versus dollar for buying and selling at 60.20 and 60.22, respectively.
OPEN MARKET RATES: On May 22, the rupee shed 5 paisa in relation to the greenback for buying and selling at 60.45 and 60.50, respectively.
The rupee also shed 15 paisa versus euro for buying and selling at Rs 76.50 and Rs 76.68, moneychangers said.
On May 23, the feature of the day was euro's surge in the international markets, and it gained Rs 1.33 to Rs 78.05 in the early session, but at close it trimmed some gains at Rs 77.40 and Rs 77.50 for buying and selling, respectively. The rupee, however, gained 5 paisa against dollar for buying and selling at 60.39 and 60.44.
On May 24, the rupee halted sharp erosion versus dollar, shedding only one paisa for buying at 60.40 and 3 paisa for selling at 60.47, dealers said.
The rupee, however, managed to gain 25 paisa versus euro for buying and selling at Rs 77.15 and Rs 77.25, respectively.
On May 25, the rupee moved little versus greenback at Rs 60.40 and 60.45, dealers said. The rupee gained 30 paisa versus euro for buying and selling at 76.85 and 76.95, respectively.
On May 26, the rupee shed 2 paisa versus dollar for buying and selling at 60.42 and 60.47, respectively. The rupee lost 16 paisa versus euro for buying and selling at Rs 77.01 and Rs 77.10, dealers said.