DESPITE external and fiscal imbalances, and political uncertainty, the rupee/dollar parity has shown a persistently stable trend since the past three weeks in the local currency market.

On the interbank market, the rupee commenced Monday in a negative mode, suffering one-paisa loss against the dollar at Rs110.54 and Rs 110.55 against the last closing at Rs110.53 and Rs110.54.

Trading in negative territory in the open market, the dollar continued to fly high against the rupee last week. On Monday, the rupee/dollar parity retained its weekend rate on the buying counter.

However, the rupee shed ten paisa on the selling counter due to increased dollar demand, changing hands at Rs112.00 and Rs112.40 against the prior weekend`s level of Rs112.00 and Rs112.30.

Continuing its downslide on Tuesday, the rupee posted ten-paisa loss on the buying counter, and five-paisa loss on the selling counter, with dollar drifting higher at Rs112.10 and Rs112.45.

Owing to adequate availability of dollar amid sluggishdemand on Wednesday, the dollar traded flat against the rupee at Rs112.10 and Rs112.45, retaining overnight rate.

However, the rupee further shed ten-paisa on the buying counter and five-paisa on the selling counter that enabled the dollar to hit the week`s highest level against the rupee at Rs112.20 and Rs112.50.

The rupee retained its overnight rate on Friday and closed the week flat at Rs112.20 and Rs112.50. The market did not show any immediate reaction over the central bank`s monetary policy committee`s surprise move to raise discount by 25 basis points to six per cent.

The rupee stayed stable due to normal dollar demand.

However, on week-on-week basis, the dollar in the open market showed an appreciation of 20 paisa against the rupee.

Against euro, the rupeetraded in minus throughout last week. On Monday, it posted a 35 paisa loss and traded Rs 136.60 and Rs 138.60 against the previous week close at Rs 136.25 and Rs 138.25.

It extended its overnight losses on Tuesday, shedding another ten-paisa, and slid to Rs 136.70 and Rs 138.70. The rupee further slipped by tenpaisa to Rs 137.80 and Rs 139.80 on Wednesday.

On Thursday, the rupee downslide versus the euro persisted for the fourth straight day. It plunged to record lows at Rs 138.40 and Rs 140.40 after shedding 60 paisa and breaching almost a four year low at Rs138.40 and Rs140.40.

On Friday, the rupee tumbled to fresh lows at Rs139.50 and Rs141.50 after suffering a loss of Rs1.10 over the previous session close. During the week, the euro in the open market gained Rs3.25 against the rupee on a weekly basis.