THE RUPEE: dollar, euro higher in open market

Increasing demand for dollars pushed the rupee down in the open market on Tuesday as it lost eight paisa for buying and selling at Rs 61.08 and Rs 60.18 in process of trading, dealers said.
Strong demand for dollars by the importers pushed the rupee value lower as the interbank is buying dollars to meet their client's requirements, currency experts said. The rupee continued its weakness against the euro, falling 21 paisa more for buying and selling at Rs 81.75 and Rs 81.85.
The single European currency made handsome gains in the international market as yen hit a record low versus euro and held near a 4-1/2-year trough against dollar on Tuesday, pressured by the view that Japanese interest rate rises will be outpaced by those of other central banks.
Dollar remained weak against euro and sterling on a slide in US government bond yields, which retreated after touching five-year highs last week. Yen has fallen across the board since Bank of Japan Governor Toshihiko Fukui said last week he had no preconceived ideas about a future rate rise, dousing expectations of a hike in July.
INTERBANK RATES: the rupee managed to recover its loss against dollar in interbank market, picking up two paisa for buying and selling at Rs 60.60 and Rs 60.62, dealers said. Dollar supply has improved, which helped the rupee to recover its lost ground and it is likely that the rupee may show more strength in the coming days, dealers said.

================================

Kerb Buying             Rs 61.08

Kerb Selling            Rs 61.18

================================

INTERBANK CLOSING RATES: Interbank closing rates for dollar on Tuesday.

==============================

Buying                Rs 60.60

Selling               Rs 60.62

==============================

=================================================================

Repo Rates (Yield p a)

-----------------------------------------------------------------

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=================================================================

Overnight   9.40       9.45       9.40        9.45           9.43

1-Week      9.10       9.30       9.25        9.40           9.26

2-Weeks     9.00       9.20       9.10        9.25           9.14

1-Month     8.90       9.10       9.00        9.15           9.04

2-Months    8.80       8.95       8.85        9.05           8.91

3-Months    8.80       9.00       8.85        9.05           8.93

4-Months    8.85       9.00       8.90        9.10           8.96

5-Months    8.85       9.00       8.95        9.10           8.98

6-Months    8.85       9.10       9.00        9.15           9.03

9-Months    8.90       9.10       9.05        9.20           9.06

1-Year      8.90       9.15       9.10        9.25           9.10

=================================================================

Call Rates (Yield p a)

-----------------------------------------------------------------

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=================================================================

Overnight    9.40      9.75       9.45        9.80           9.60

1-Week       9.25      9.50       9.35        9.60           9.43

2-Weeks      9.25      9.50       9.40        9.75           9.48

1-Month      9.25      9.60       9.50        9.75           9.53

2-Months     9.25      9.60       9.40        9.75           9.50

3-Months     9.25      9.60       9.40        9.75           9.50

4-Months     9.40      9.75       9.65        9.90           9.68

5-Months     9.50      9.75       9.75       10.00           9.75

6-Months     9.75     10.00      10.00       10.25          10.00

9-Months    10.00     10.25      10.25       10.50          10.25

1-Year      10.00     10.50      10.25       10.75          10.38

=================================================================

RUPEE IN LAHORE: The rupee depreciated its worth by five paisa in relation to the greenback in the local currency markets on Tuesday.
According to the currency dealers, the dollar's trading commenced at Monday's closing levels of Rs 61.00 and Rs 61.10 on buying and selling counters, respectively. Since fresh buying, the dollar moved up and closed at Rs 61.05 and Rs 61.15 on buying and selling sides, respectively.
Similarly, the rupee remained under pressure and further lost its value against the pound sterling. The British pound was purchased at Rs 120.90 and sold at Rs 121.20 as compared to Rs 120.50 and Rs 120.80 of Monday, the dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar resumed trading at Rs 60.90 (buying) and Rs 61.00 (selling) against the last rate. It did not observe any change in the evening session and closed at Rs 60.90 (buying) and Rs 61.00 (selling).
Pound Sterling opened at Rs 120.00 (buying) and Rs 120.20 (selling) against the previous rate. The British currency did not witness any change in the second spell and closed at Rs 120.00 (buying) and Rs 120.20 (selling).
Copyright Business Recorder, 2007