AS it emerged at the start of last week that the IMF staff would recommend its executive board to release around $1.1bn to the country in December, the rupee rallied against the dollar and dropped below the 102-mark.
The prime minister’s successful visit to China, which resulted in agreements for investment and financing worth over $46bn, was also said to boost sentiments in the local currency market.
However, once the euphoria subsided and noise from the political front reemerged, the local currency gave back some of the gains.
The rupee started the week on the interbank market by gaining 55 paisas, sending the dollar lower to Rs101.75 and Rs101.80 in the first trading session, against the prior week’s close of Rs102.30 and Rs102.35.
It picked up another 10 paisas in the second trading session, pushing the dollar down to Rs101.65 and Rs101.70.
In the third trading session, however, the rupee ended lower by 15 paisas, as the dollar rose to Rs101.80 and Rs101.83. But the local currency managed to gain 10 paisas in the fourth trading session, as the greenback slipped to Rs101.70 and Rs101.72.
However, the rupee ended the last trading session with a loss of four paisas, as the dollar closed the week at Rs101.74 and Rs101.76. Yet, the dollar depreciated by a net 56 paisas in the interbank market last week.
