THE RUPEE: dollar moves both ways

Divergent trend was seen on the currency market on Wednesday as the rupee performed on the both sides in process of trading, dealers said. The rupee gained 12 paisa in relation to dollar for buying at 85.40 and appreciated by 11 paisa for selling at 85.44, they said.
INTERBANK MARKET RATES: In the third Asian trade euro edged higher after European Central Bank (ECB) officials stressed their readiness to raise interest rates to fight inflation, though it was expected to face resistance near $1.3750. Market players said euro was supported by buying from hedge funds and Asian central banks and by short-covering, while a drop in US Treasury yields the previous day helped weigh on dollar.
"The market seems to be short (euro) after yesterday's moves and we could see a rise toward such levels (near $1.3750) on short-covering," said a trader for a Japanese brokerage house in Tokyo. The euro rose 0.3 percent to $1.3692, having bounced back sharply from the previous day's intraday low of $1.3525. Interbank buy/sell rates for taka against dollar on Wednesday: 71.19/71.26 (previous 71.18/71.18).
Indian rupee was trading at Rs 45.26 in relation to dollar, Malaysian ringgit was available at 3.0485 and Chinese yuan was at 6.5798 versus the greenback.
OPEN MARKET RATES: The rupee held the overnight levels in terms of dollar for buying at 85.40 it, however, shed five paisa for selling at 85.60, they added. The rupee fell sharply against euro, dipping Rs 1.22 for buying and selling at Rs 116.68 and Rs 117.18, they said.

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Open Buying     Rs 85.40

Open Selling    Rs.85.60

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Interbank Closing Rates: Interbank Closing Rates For Dollar on Wednesday.

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Buying          Rs.85.40

Selling         Rs.85.44

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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    13.25      13.90      13.60        13.90       13.66

1-Week       11.70      13.10      12.90        13.15       12.71

2-Week       11.80      13.00      12.90        13.10       12.70

1-Month      12.05      13.00      12.95        13.10       12.78

2-Months     12.50      13.15      13.15        13.25       13.01

3-Months     12.90      13.20      13.20        13.30       13.15

4-Months     13.00      13.30      13.25        13.35       13.23

5-Months     13.20      13.45      13.40        13.50       13.39

6-Months     13.35      13.50      13.45        13.55       13.46

9-Months     13.40      13.60      13.50        13.65       13.54

1-Year       13.45      13.60      13.55        13.65       13.56

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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    13.25      13.90      13.50        13.90       13.64

1-Week       12.00      13.15      12.95        13.20       12.83

2-Week       12.40      13.10      13.00        13.15       12.91

1-Month      12.60      13.10      13.10        13.20       13.00

2-Months     12.90      13.35      13.30        13.40       13.24

3-Months     13.10      13.60      13.40        13.70       13.45

4-Months     13.25      13.65      13.45        13.75       13.53

5-Months     13.40      13.70      13.50        13.75       13.59

6-Months     13.50      13.75      13.70        13.90       13.71

9-Months     13.60      13.80      13.75        13.95       13.78

1-Year       13.50      13.90      13.80        14.00       13.80

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RUPEE IN LAHORE: The rupee-dollar parity remained unchanged at Lahore currency market for the second consecutive day on Wednesday.
According to dealers, the dollar's buying and selling rates remained intact at Rs 85.45 and Rs 85.65, respectively.
On the contrary, the rupee lost 20 paisa on buying counter and 50 paisa on selling counter against pound, which was purchased and sold at Rs 137.50 and Rs 138.50 as compared to last closing of Rs 137.30 and Rs 138.00, respectively, dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar-rupee parity remained unchanged at the currency exchange establishments of Islamabad and Rawalpindi here on Wednesday.
The dollar opened at Rs 85.95 (buying) and Rs 86.20 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.95 (buying) and Rs 86.20 (selling).
Pound Sterling opened at Rs 136.35 (buying) and Rs 136.75 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.35 (buying) and Rs 136.75 (selling).
Copyright Business Recorder, 2011