THE RUPEE: all-round gains on currency market

Expected increase in inflows in the coming days and an encouraging trend in the Foreign Direct Investment (FDI) helped the rupee to expand ground against dollar in both the open and interbank markets on Wednesday, dealers said.
In the interbank market the rupee posted sharp gains in terms of US currency, picking up eight paisa in a single day for buying and selling at Rs 60.61 and RS 60.63, they said. Rising inflows were enough to meet the importers' demand, they said. The interesting thing to note is that market is receiving dollars' sol by the exporters, they added.
Continued rise in the remittance and reports that the UAE to double investment in the country, which is nearly 26 billion dollars, improved dollars supply despite the fact that the importers were busy in clearing the bills.
In the overseas market, the dollar struck a 4-1/2-year high against the yen, with traders saying market players were rushing to cover short positions after a drop in Asian stock markets failed to spark an unwind of carry trades.
The dollar jumped to 122.31 yen, the highest since December 2002 and up 0.5 percent on the day. The euro gained 0.5 percent to 162.65, recovering from a one-month low near 161.50 yen struck earlier in the session. Both the high-yielding Australian and New Zealand dollars were up about 0.7 percent versus the yen.
OPEN MARKET RATES: Same trend mirrored in the open market as the rupee managed to gain five paisa versus dollar for buying at Rs 60.85 and was up by eight paisa for selling at Rs 60.92, analysts said. The rupee rejected the vulnerability against euro, gaining 42 paisa for buying and selling at Rs 80.80 and Rs 80.90, they said.

================================

Kerb Buying             Rs 60.85

Kerb Selling            Rs 60.92

================================

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

==============================

Buying                Rs 60.61

Selling               Rs 60.63

==============================

=================================================================

Repo Rates (Yield p a)

-----------------------------------------------------------------

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=================================================================

Overnight   7.75        8.50        7.85        8.75         8.21

1-Week      8.40        8.75        8.60        8.85         8.65

2-Weeks     8.60        8.75        8.75        9.00         8.78

1-Month     8.80        9.00        8.90        9.05         8.94

2-Months    8.80        8.90        8.90        9.00         8.90

3-Months    8.80        8.95        8.90        9.00         8.91

4-Months    8.85        9.00        8.95        9.05         8.96

5-Months    8.90        9.00        9.00        9.10         9.00

6-Months    8.90        9.05        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

=================================================================

Call Rates (Yield p a)

-----------------------------------------------------------------

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=================================================================

Overnight     7.75      8.75       8.00        9.00          8.38

1-Week        8.60      8.90       8.75        9.10          8.84

2-Weeks       8.90      9.25       9.05        9.35          9.14

1-Month       9.20      9.40       9.30        9.50          9.35

2-Months      9.30      9.60       9.50        9.75          9.54

3-Months      9.40      9.60       9.50        9.75          9.56

4-Months      9.50      9.75       9.75       10.00          9.75

5-Months      9.75     10.00      10.00       10.25         10.00

6-Months      9.75     10.00      10.00       10.25         10.00

9-Months     10.00     10.25      10.50       10.75         10.38

1-Year       10.00     10.50      10.50       10.75         10.44

=================================================================

RUPEE IN LAHORE: The rupee showed stability and remained unchanged against the greenback in the local currency markets on Wednesday.
According to the currency dealers, the dollar resumed trading at overnight closing level of Rs 60.90 and Rs 61.00 as its buying and selling rates, respectively. There was no change in dollar's demand and supply condition, which provided stability to the local currency. At the end of trading, the trading of dollar was closed at the opening rates, the dealers added.
However, the rupee recovered its earlier loss and maintained upward trend against the pound sterling. The pound was purchased at Rs 119.80 and was sold at Rs 120.10 as compared to Tuesday's closing of Rs 120.0 and Rs 120.30, 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 60.80 (buying) and Rs 60.90 (selling) against same previous rate. It did not observe any change in the last trading hours and closed at Rs 60.80 (buying) and Rs 60.90 (selling).
Pound Sterling opened at Rs 119.80 (buying) and Rs 119.90 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 119.80 (buying) and Rs 119.90 (selling).
Copyright Business Recorder, 2007