December has shown some stability in the exchange rate
In a sign of stability, the dollar continued to trade in a narrow range, slightly above Rs139 on the third consecutive session when the market opened on Thursday.
The dollar had been hovering at the level of Rs140 in the previous two weeks before it fell below that mark on Monday and showed little fluctuations as it traded in a narrow range before becoming stable at Rs139.2.
Unlike previous months, December showed some stability in the exchange rates, which have kept both traders and buyers nervous about where it would settle at the close of 2018.
Since December 2017, when a dollar was worth Rs106, its rate has appreciated more than 30% against the rupee, witnessing two of its biggest ever single day jumps in the short span of one-and-a-half months.
On November 30, the dollar jumped Rs9.5 to Rs143.5 in the interbank market in what remains its highest intraday gain and highest ever level in its history respectively. However, it has come down to Rs139 since then. The interbank rate is the benchmark rate that determines the rupee’s value against the US dollar and usually remains slightly below the open market rates. At the time of filing this report, a dollar was worth Rs138.9 in the interbank market.