THE RUPEE: all round fall in currency market

Weak sentiment was witnessed in the interbank market on Thursday as the rupee shed two paisa against dollar for buying at Rs 60.40 and it slid three paisa for selling at Rs 60.42, respectively. The demand for dollar was up as importers were a little bit active to cover their immediate needs, dealers said.
In the international markets, dollar stayed at near a 26-year low against sterling and a two-month trough versus euro, as investors awaited interest rate decisions by key central banks later in the session. The yen was under broad pressure from the Bank of Japan's 0.5 percent policy rate, the lowest among major countries, and the central bank's repeated pledge to raise rates only gradually.
The Bank of England (BoE) is widely expected to lift rates by 25 basis points to 5.75 percent after a two-day meeting that ends on Thursday, taking them further above the Federal Reserve's 5.25 percent rate.
OPEN MARKET RATES: The rupee failed to resist its slide against dollar, losing 10 paisa more for buying and selling at Rs 61.05 and Rs 61.15 due to strong demand by the importers, money experts said. The rupee also shed four paisa against euro for buying and selling at Rs 82.46 and Rs 82.56, they said.

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KERB BUYING             Rs 61.05

KERB SELLING            Rs 61.15

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

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Buying                Rs 60.40

Selling               Rs 60.42

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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   4.50       7.50       4.75        8.00           6.19

1-Week      8.25       8.75       8.50        8.85           8.59

2-Weeks     8.50       8.80       8.70        8.90           8.73

1-Month     8.60       8.75       8.75        8.90           8.75

2-Months    8.70       8.90       8.80        9.00           8.85

3-Months    8.75       8.90       8.85        9.00           8.88

4-Months    8.80       9.00       8.85        9.05           8.93

5-Months    8.85       9.00       8.95        9.10           8.98

6-Months    8.85       9.10       8.95        9.10           9.00

9-Months    8.90       9.10       9.00        9.15           9.04

1-Year      8.90       9.10       9.10        9.25           9.09

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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   5.00       7.75       5.50        8.25           6.63

1-Week      8.75       9.00       9.00        9.25           9.00

2-Weeks     8.75       9.10       8.90        9.25           9.00

1-Month     8.90       9.25       9.00        9.40           9.14

2-Months    9.25       9.50       9.40        9.70           9.46

3-Months    9.25       9.60       9.40        9.75           9.50

4-Months    9.40       9.75       9.65        9.90           9.68

5-Months    9.50       9.75       9.75       10.00           9.75

6-Months    9.75      10.00      10.00       10.25          10.00

9-Months   10.00      10.25      10.25       10.50          10.25

1-Year     10.00      10.50      10.25       10.75          10.38

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RUPEE IN LAHORE: The rupee continued downward slide for the second consecutive day and lost its value by five paisa in relation to the greenback in the local currency markets on Thursday.
According to the currency dealers, the dollar's trading commenced at overnight closing rates of Rs 61.00 and Rs 61.10 as its buying and selling rates, respectively. Because of fresh buying, the dollar moved up and finally closed at Rs 61.05 and Rs 61.15 on buying and selling counters, respectively, the dealers said.
Likewise, the rupee could not get out of pressure and further declined against the pound sterling. The pound's buying rate increased from Wednesday's closing of Rs 121.95 to Rs 122.10 while selling rate moved up from Rs 122.25 to Rs 122.40, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi on Thursday.
The dollar opened at Rs 60.90 (buying) and Rs 61.00 (selling) against the overnight value. It did not observe any change in the second session and closed at Rs 60.90 (buying) and Rs 61.00 (selling).
Pound Sterling opened at Rs 120.00 (buying) and Rs 120.20 (selling) against the previous rate. It did not observe any change in the second session and closed at Rs 120.00 (buying) and Rs 120.20 (selling).
Copyright Business Recorder, 2007