Dollar marginally low

Some slight changes were seen on the money market on Saturday in the process of trading, dealers said. Interbank rates for dollar on Saturday at 13:30 hrs.

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Buying       Rs 87.50

Selling      Rs 87.55

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Kerb market rates for the US currency at 11:30 hours

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Buying       Rs 87.50

Selling      Rs 87.70

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INTERBANK MARKET: The rupee after a long-time managed to gain marginally versus dollar, rising five paisa for buying and selling at 87.50 and 87.55, they said.
At the weekend, euro fell to its lowest in more than six months against dollar as risk aversion increased after news an ECB executive board member will resign in protest over the bank's bond-buying programme. Losses in euro could accelerate in the coming weeks given ongoing sovereign debt uncertainty and the European Central Bank's shift to a neutral bias amid lower growth forecasts. Money markets have consequently priced in a rate cut from the ECB by year-end.
News of ECB Executive Board Member Juergen Stark's resignation over the bank's purchases of peripheral bonds caught most investors by surprise. The ECB has been buying government debt of highly-indebted euro countries such as Italy, Spain, and Portugal to help shore up these nations' finances.
Besides, a darkening euro zone economic outlook, a shrinking interest rate advantage and scepticism over European authorities' ability to resolve the sovereign debt crisis have raised the risk euro will fall towards $1.30 before year-end.
The single currency has already broken below $1.40 - a level around which sovereign demand has been clustered - and plumbed a six-month low around $1.3790 on Friday after the European Central Bank on Thursday signalled a halt to its policy tightening.
OPEN MARKET RATES: The rupee did not show any change against the dollar for buying at 87.50 and selling at 87.70, they added. The rupee gained Rs 1.07 versus euro for buying and selling at Rs 119.35 and Rs 119.85, they said.
LAHORE The rupee-dollar parity remained unchanged at the open currency markets of Lahore on Saturday. The dollar opened at Rs 87.60 and Rs 88.00 on buying and selling counters, respectively, against the overnight rate. It did not observe any change in the second session and closed at Rs 87.60 and Rs 88.00, as dollar's buying and selling rates, respectively.
Pound Sterling opened at Rs 140.10 and Rs 141.10 on buying and selling counters, respectively. The pound was purchased and sold at Rs 140.00 and Rs 140.80, respectively, as against Rs 140.20 and Rs 141.50 of Friday, the dealers said.
ISLAMABAD The rupee-dollar parity remained unchanged at the currency markets of Islamabad and Rawalpindi on Saturday. The dollar opened at Rs 87.05 (buying) and Rs 87.20 (selling) overnight rates. It did not observe further change in the second session and closed at Rs 87.05 (buying) and Rs 87.20 (selling). Pound sterling opened at Rs 138.45 (buying) and Rs 138.55 (selling) against same overnight values. British currency did not observe further change in the evening session and closed at Rs 138.45 (buying) and Rs 138.55 (selling).
Copyright Business Recorder, 2011