THE RUPEE: dollar bounces in interbank trade

Bearish sentiment was seen on the currency market on Saturday as rupee was not able retain its overnight level versus dollar on the interbank dealings, dealers said. The rupee gave up its overnight firmness in relation to dollar, shedding 10 paisa for buying at 85.44 and slipped by eight paisa for selling at 85.46 due to rising demand for the US currency, they said.
INTERBANK MARKET RATES: At the weekend, the Group of Seven (G-7) launched its first coordinated currency market intervention since 2000 and pledged to do more if needed to rein in a soaring yen, but investors betting on a sustained decline in the Japanese currency could be disappointed.
Both the Federal Reserve and Bank of Canada said they had sold yen, bolstering European and Japanese efforts to restrain yen and calm markets after Japan's devastating earthquake, tsunami and unfolding nuclear crisis.
The dollar rose nearly four percent to 82.00 yen on trading platform EBS in European trade, but hedge funds and other speculative accounts tested official resolve by buying into yen sell-off. The dollar last traded just below 81 yen, though still up 2.7 percent on the day.
OPEN MARKET RATES: The rupee managed to hold its overnight levels against dollar for the second day for buying and selling at 85.40 and 85.55, they added. Meanwhile, the rupee continued its fall in terms of euro, losing 41 paisa for buying and selling at Rs 120.40 and Rs 120.90, they said.

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Open Buying     Rs 85.40

Open Selling    Rs.85.55

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

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Buying          Rs.85.44

Selling         Rs.85.46

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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     13.50      13.90      13.75       13.90       13.76

1-Week        12.25      13.15      13.10       13.25       12.94

2-Week        12.30      13.10      13.10       13.15       12.91

1-Month       12.20      13.05      13.05       13.10       12.85

2-Months      12.50      13.15      13.15       13.25       13.01

3-Months      12.50      13.20      13.20       13.30       13.05

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     13.50      13.90      13.75       13.95       13.78

1-Week        12.30      13.25      13.20       13.30       13.01

2-Week        12.40      13.25      13.15       13.30       13.03

1-Month       12.70      13.30      13.15       13.40       13.14

2-Months      13.00      13.40      13.30       13.50       13.30

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 Pak rupee recovered its day earlier loss and improved ten-paisa on buying side and five-paisa on selling side against the dollar in the local currency market on Saturday.
According to the currency dealers, because of lacking buying support, the dollar could not sustain and declined against the rupee. The dollar was traded at Rs 85.30 and Rs 85.55, as its buying and selling rates against the overnight closing of Rs 85.40 and Rs 85.60, respectively, they said.
However, the rupee failed to maintain its day earlier position and registered decline against the British pound. The pound's buying and selling rates were improved from Friday closing of Rs 137.10 and Rs 137.80 to Rs 137.80 and Rs 138.80, respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained unchanged against the rupee at the open currency markets of Islamabad and Rawalpindi here on Saturday.
The dollar resumed trading at Rs 85.20 (buying) and Rs 85.30 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.20 (buying) and Rs 85.30 (selling).
Pound Sterling opened at Rs 136.50 (buying) and Rs 137.50 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.50 (buying) and Rs 137.50 (selling).
Copyright Business Recorder, 2011