The dollar continued to slide against the rupee as the country successfully floated $2 billion worth of Eurobonds last week, with further forex inflows from the telecom licences auction, multilateral assistance and CSF payments expected in the near future.

However, the gap between interbank and open market dollar rates continued to widen, crossing the Rs3 mark by the end of last week, amid reports that currency exchangers were deliberately citing higher rates to minimise losses on their forex holdings.

At the interbank market, the rupee started last week by shedding five-paisa for buying eight-paisa for selling, as the greenback ended the first trading session at Rs98.20 and Rs98.25, against the prior week’s close of Rs98.15 and Rs98.17.

But the rupee picked up 10-paisa for buying and 13-paisa for selling in the second trading session, as the dollar ended the day at Rs98.10 and Rs98.12. The local currency then gained another 32-paisa in the third trading session, as the dollar slipped to Rs97.78 and Rs97.80.

The rupee continued its surge against the greenback in the fourth trading session, as it picked up 58-paisa for buying and 50-paisa for selling, pushing the dollar to Rs97.20 and Rs97.30.

The local currency then ended the week with a further gain of 65-paisa for buying and 70-paisa for selling, as the dollar closed the last trading session at Rs96.55 and Rs96.60, reportedly its weakest against the rupee since December 7, 2012.

The greenback fell by 1.6pc in the interbank market last week.

At the open market, the rupee-dollar parity remained unchanged in the first three trading sessions at the prior week’s close of Rs99.80 at Rs99.95. In the fourth trading session, the rupee picked up 50-paisa for buying and 45-paisa for selling, sending the dollar down to Rs99.30 and Rs99.50. The rupee-dollar parity ended the last trading session of the week at this level as well.

On a weekly basis, the dollar depreciated by 0.65pc against the rupee in the open market last week. So far this month, the rupee has surged by 0.6pc against the dollar, after gaining 5.4pc last month.

Meanwhile, the rupee strengthened against the euro as well, as the common currency reportedly fell to a seven-month low by the end of the week. The rupee gained in four of five trading sessions.

On a weekly basis, the local currency appreciated by 1.44pc against the euro. The euro ended the week at Rs135.00 and Rs135.50, reportedly its lowest since August 5, 2013.