Dollar trade range-bound

NO major development took place in the local currency market this week. The rupee showed firm trend against the dollar moving both ways in narrow ranges throughout the week. There was no rush for dollar buying in the market. Supply of dollar was sufficient to meet usual demand as such there was no pressure on the rupee. Against the European single common currency, however, the rupee was seen under slight pressure amid fluctuations. During the week, euro in the local currency market touched its highest level at Rs121.37 on the selling counter and lowest level at Rs119.45 on the buying counter. On the inter-bank market, the week commenced on a firm note with the rupee inching up by two paisa against the dollar in the first trading session. At the close of the session, the dollar was changing hands at Rs85.33 and Rs85.38 against previous week close of Rs85.35 and Rs85.40. Upward rising trend in the rupee/dollar parity persisted in the second trading session as the rupee further gained five paisa and traded against the dollar at Rs85.28 and Rs85.32 on March 29. On March 30, the rupee extended its overnight gains versus dollar and posted fresh gains of 4 paisa on the buying counter another three paisa on the selling counter, changing hands at Rs85.24 and Rs85.29 amid dull trading activities. In the fourth trading session, however, the rupee failed to hold firm ground versus dollar and shed eight paisa to trade at Rs85.32 and Rs85.37. In the last trading session on April 1, the rupee traded unchanged at its overnight level on the buying counter but appreciated by 3 paisa on the selling counter, closing the week at Rs85.32 and Rs85.34 against the dollar. As a result, the gap between the buying and selling rates narrowed to two paisa from five paisa. On week over week basis, the rupee in the inter-bank market gained three paisa against the dollar during this week. In the open market, the rupee/dollar parity this week traded in narrow ranges amid modest fluctuations. The week commenced on a negative note with the rupee trading in relation to dollar at Rs85.25 and Rs85.40 in the first trading session, down 10 paisa over last weekend's Rs85.15 and Rs85.30. The rupee, however, briefly strengthened against the dollar and traded at Rs85.20 and Rs85.40 on March 29, after gaining five paisa in the second trading session. It further extended its overnight firmness in the third trading session, picking up five paisa to trade against the dollar at Rs85.15 and Rs85.35 on March 30. The rupee gave up its firmness in the fourth trading session and shed five paisa, changing hands against dollar at Rs85.20 and Rs85.35 on March 31. However, it managed to recover partial losses in the last trading session when it posted five paisa gain on the buying counter but did not show any change on the selling counter, trading at Rs85.15 and Rs85.35 on April 1. Compared to last weekend, the rupee in the open market lost five paisa against the dollar on the selling counter while remaining unchanged on the buying counter this week. Versus the European single common currency, downward pressure persisted on the rupee throughout the week in review. The rupee extended its weekend decline on the opening day of the week, losing 14 paisa in terms of euro to trade at Rs119.59 and Rs120.09 on March 28. Euro had closed last week at Rs119.45 and Rs119.95. On March 29, however, the rupee posted sharp decline of 68 paisa, changing hands against the euro at Rs120.13 and Rs120.63 in the local currency market. The rupee rebounded in the third trading session. It picked up 45 paisa versus euro, changing hands at Rs119.68 and Rs120.18 on March 30. In the fourth trading session, the rupee posted Rs1.19 loss and was changing hands versus euro at Rs120.87 and Rs121.37. The rupee, however, recovered 60 paisa pushing euro in the final trading session down at Rs120.27 and Rs120.77 at the close of the week. On cumulative basis, the rupee this week posted 82 paisa decline against the euro. In the international financial market, the dollar on the week's opening day rose to a session peak of 81.84 yen, its highest since March 18. It was last up 0.5 per cent at 81.71 yen. The euro, meanwhile, was up 0.1 per cent at $1.4096. In late London trade, sterling was down 0.1 per cent at $1.6020, recovering some losses. Still, its near-term recovery lost steam at $1.6029. On March 29, the dollar rose to 82.51 yen, its highest in more than two weeks and above the 81.98 peak of March 18. The euro briefly recovered from $1.4045 to trade up 0.1 per cent from previous day's $1.4096. In London, sterling slipped against the dollar to trade at a session low of $1.5943, close to a two-month trough of $1.5937 hit on March 28. . It was last trading at $1.5968, down around 0.1 percent on the day. On March 30, the euro rose against the dollar, hitting $1.4147. It is up five per cent against the dollar in 2011. It was last at $1.4128, well off a $1.4049 session low. The dollar rose to around 83.19 yen, a level last seen on March 11. It last traded at 82.89 yen, up 0.5 per cent. In London, sterling was up 0.17 per cent against the dollar at $1.6042, having dropped to a low of $1.5837 earlier this week. On March 31, the euro rose 0.4 percent to $1.4178. It has gained 6 percent against the dollar in the first quarter. Against the Japanese currency, the greenback was at 83.13 yen, up 0.3 per cent. Sterling was firmer against the dollar in London trade, up 0.4 per cent at $1.6138, pulling further away from a two-month low of $1.5937 hit earlier this week. At the close of the week on April 1, the dollar slipped against the euro around $1.4197 at mid-session in New York, up 0.2 per cent, well off the session low of $1.4059. Against the yen, the dollar was up 0.6 percent at 83.65 yen. It touched a six-week high of 83.748 yen on trading platform EBS earlier. Sterling fell against a broadly stronger dollar in London trade, hitting a session low of $1.5987, not far from a two-month low of $1.5937 hit last month.