THE RUPEE: dollar dips further

The rupee extended its overnight gains against dollar in the interbank market on Wednesday as it picked up four paisa for buying at Rs 60.53 and rose by five paisa for selling at Rs 60.54, dealers said. High inflows of dollars enabled the rupee to retain its gain, picked up nearly seven to eight paisa since the week started, dealers said.
Currency analysts said that strong remittances, upward trend in the Foreign Direct Investment (FDI) and rising pattern in the foreign exchange reserves are the factors, strengthening the rupee against dollar. Some bankers said that despite the continued dollar buying by the importers, different local and foreign banks were selling approximately 50 million dollars on daily basis to meet the clients demand.
In the international markets, yen rose broadly on Wednesday and high yield providers dipped as worries about the US sub-prime mortgage sector dimmed appetite for the carry trade.
OPEN MARKET RATES: Easier trend was seen in the open market as the rupee was down by three paisa against dollar for buying and selling at Rs 61.18 and Rs 61.25, dealers said. The rupee, however, gained nine paisa in relation to the dollar for buying and selling at Rs 81.87 and Rs 82.00, they said.

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KERB BUYING             Rs 61.18

KERB SELLING            Rs 61.25

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

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Buying                Rs 60.53

Selling               Rs 60.54

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Repo Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight   3.00       8.00       3.50        8.25           5.69

1-Week      8.50       8.85       8.75        8.90           8.75

2-Weeks     8.50       8.85       8.75        8.90           8.75

1-Month     8.60       8.70       8.75        8.80           8.71

2-Months    8.70       8.90       8.80        9.00           8.85

3-Months    8.80       8.95       8.85        9.00           8.90

4-Months    8.80       9.00       8.85        9.05           8.93

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

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Call Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight   5.00       8.50       5.50        8.75           6.94

1-Week      8.75       9.00       8.90        9.25           8.98

2-Weeks     8.75       9.25       9.00        9.40           9.10

1-Month     8.90       9.25       9.10        9.50           9.19

2-Months    9.25       9.50       9.40        9.70           9.46

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

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RUPEE IN LAHORE: The rupee depreciated its worth by 5-paisa in relation to the greenback in local currency markets on Wednesday.
According to the currency dealers, the dollar resumed trading at overnight closing levels of Rs 61.05 and Rs 61.15 as its buying and selling rates, respectively. Due to increasing demand of the dollar, its rate improved and it was traded at Rs 61.10 and Rs 61.20 on buying and selling sides, respectively, the dealers added.
Similarly, the local currency lost its worth against the pound sterling. The British pound was purchased at Rs 121.65 and was sold at Rs 121.95 as compared to previous closing of Rs 121.60 and Rs 121.90, respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi on Wednesday.
The dollar opened at Rs 60.90 (buying) and Rs 61 (selling) against same last rate. It did not observe any change in the second session and closed at Rs 60.90 (buying) and Rs 61 (selling).
Pound Sterling resumed trading at Rs 120 (buying) and Rs 120.20 (selling) against same overnight value. It did not witness any change in the last trading hours and closed at Rs 120 (buying) and Rs 120.20 (selling).
Copyright Business Recorder, 2007