THE RUPEE: dollar higher

Bears dominated the currency market on Saturday as the rupee fell versus dollar in process of higher demand for the US currency, experts said. The rupee dropped eight paisa against dollar for buying at 85.90 and shed nine paisa for selling 85.95, they said.
INTERBANK MARKET RATES: At the weekend the US dollar fell against yen, Swiss franc and sterling as significantly weaker-than-expected US jobs data raised expectations that the Federal Reserve will leave interest rates low well into next year.
The US Treasury runs out of cash to pay its bills on August 2 unless the government is legally allowed to borrow more. With the United States long regarded as the most stable country with its currency used as the global reserve, even talk of a US debt default has sent shudders through international markets.
The dollar is likely to trend lower in the week ahead in the aftermath of an abysmal US jobs report on Friday and without clear signs of progress on the approaching US debt ceiling deadline. The rapidly approaching deadline has for now overshadowed debt problems in the euro zone. Friday's jobs report showing only meagre growth in June payrolls added to the gloom surrounding the US dollar as investors see the government and Federal Reserve as failing in efforts to stoke economic growth despite a huge stimulus program and rise in borrowings.
OPEN MARKET RATES: The rupee drifted lower in relation to dollar for buying and selling at 86.10 and 86.30, they added. The rupee, however, gained in terms of euro, gaining 38 paisa for buying and selling at Rs 122.38 and Rs 122.88, they said.

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Open Buying     Rs 86.10

Open Selling    Rs 86.30

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

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Buying          Rs 85.90

Selling         Rs 85.95

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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       13.75       13.90       13.70

1-Week       13.00      13.30       13.25       13.35       13.23

2-Week       12.95      13.30       13.30       13.35       13.23

1-Month      13.00      13.30       13.30       13.35       13.24

2-Months     13.00      13.35       13.30       13.40       13.26

3-Months     13.10      13.35       13.35       13.45       13.31

4-Months     13.10      13.40       13.35       13.45       13.33

5-Months     13.15      13.40       13.40       13.50       13.36

6-Months     13.25      13.50       13.50       13.60       13.46

9-Months     13.30      13.60       13.60       13.70       13.55

1-Year       13.40      13.65       13.65       13.75       13.61

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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    13.30      13.90       13.50       13.95       13.66

1-Week       13.00      13.35       13.30       13.40       13.26

2-Week       13.10      13.40       13.35       13.45       13.33

1-Month      13.15      13.40       13.35       13.45       13.34

2-Months     13.15      13.45       13.40       13.50       13.38

3-Months     13.15      13.50       13.45       13.60       13.43

4-Months     13.20      13.50       13.50       13.65       13.46

5-Months     13.25      13.55       13.50       13.65       13.49

6-Months     13.30      13.60       13.50       13.65       13.51

9-Months     13.50      13.70       13.60       13.75       13.64

1-Year       13.50      13.75       13.60       13.90       13.69

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RUPEE IN LAHORE: The rupee lost 10 paisa on buying side and 5 paisa on selling side in relation to dollar in Lahore currency market on Saturday.
According to dealers, the dollar commenced trading at overnight Rs 85.90 and Rs 86.10 on buying and selling side. Because of increase in demand, the dollar moved up and ended at Rs 86.00 and Rs 86.15 on buying and selling counters, respectively.
Similarly, the rupee declined against pound sterling. The pound's buying and selling rates improved from Friday's Rs 137.85 and Rs 138.40 to Rs 138.00 and Rs 138.70, respectively, dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against dollar at the currency markets of Islamabad and Rawalpindi on Saturday.
The dollar opened at Rs 86.00 (buying) and Rs 86.20 (selling) against same overnight values. It did not observe further change in the second session and closed at Rs 86.00 (buying) and Rs 86.20 (selling).
Pound sterling opened at Rs 138.40 (buying) and Rs 138.50 (selling) against same overnight values. It did not observe further change in the evening session and closed at Rs 138.40 (buying) and Rs 138.50 (selling).
Copyright Business Recorder, 2011