THE RUPEE: dollar under pressure

The dollar was still under pressure on the currency market on Friday as the rupee breached the barrier of 85 on the open market due to good supply of the US currency, experts said. The rupee extended its gain versus dollar, rising two paisa for buying at 84.82 and picked up three paisa for selling at 84.85, they said.
INTERBANK MARKET RATES: Explaining the rupee's latest appreciation, some analysts said that dollar demand was persisting but higher inflows boosted the rupee to cross the barrier of 85 versus the dollar on the open market. In the final Asian trade yen hit an 11-month low against euro and neared a six-month trough versus dollar and was seen poised for more weakness due to widening yield differentials and concerns Japan's exports may drop after last month's earthquake.
The euro climbed against yen and touched a 15-month peak against dollar, supported by market expectations that the European Central Bank will raise interest rates further in coming months after a rate rise on Thursday. Other than its rise against yen, dollar came under broad selling pressure, sliding to a fresh 29-year low against the Australian dollar, a record trough versus the Singapore dollar, and a 16-month low against a basket of currencies.
"The dollar and yen are coming under pressure as investors are more comfortable with risk," said Christopher Gothard, head of FX for Brown Brothers Harriman in Hong Kong.
Indian rupee was at Rs 44.20 in terms of the greenback, Malaysian ringgit was trading at 3.0260 in relation to the US currency and Chinese yuan was trading at 6.5390 versus dollar.
OPEN MARKET RATES: The rupee gained 10 paisa in relation to dollar for buying and selling at 84.90 and 85.10, they added. The rupee, however, lost 75 paisa in relation to euro for buying and selling at Rs 121.61 and Rs 122.11, they said.

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Open Buying     Rs 84.82

Open Selling    Rs 84.85

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

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Buying          Rs 84.90

Selling         Rs 85.10

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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     13.00     13.65      13.25       13.75        13.41

1-Week        11.50     13.30      13.20       13.35        12.84

2-Week        11.60     13.30      13.25       13.35        12.88

1-Month       11.90     13.25      13.25       13.30        12.93

2-Months      12.40     13.35      13.30       13.40        13.11

3-Months      12.90     13.35      13.30       13.40        13.24

4-Months      13.00     13.40      13.35       13.45        13.30

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     13.00     13.70      13.25       13.75        13.43

1-Week        12.30     13.40      13.30       13.50        13.13

2-Week        12.40     13.40      13.35       13.50        13.16

1-Month       12.70     13.45      13.35       13.50        13.25

2-Months      13.00     13.45      13.35       13.50        13.33

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 showed stability and remained unchanged on buying side, while it gained five-paisa on selling side against the dollar in the open currency market on Friday.
According to the currency dealers, the dollar witnessed invisible change in its supply and demand situation. The dollar resumed trading at its overnight closing of Rs 84.90 and Rs 85.15, as its buying and selling rates, respectively. At the end of trading, the dollar stayed unchanged on buying side at Rs 84.90, while it marginally declined to Rs 85.10 on selling side, the dealers said.
Similarly, the rupee-pound parity remained unchanged amid low trading activity in the local market. The pound was purchased and sold at Thursday closing of Rs 138.00 and Rs 138.40, respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained unchanged against the rupee at the open currency markets of Islamabad and Rawalpindi here on Friday.
The dollar resumed trading at Rs 85.20 (buying) and Rs 85.40 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.20 (buying) and Rs 85.40 (selling).
Pound Sterling opened at Rs 136.35 (buying) and Rs 137.50 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.35 (buying) and Rs 137.50 (selling).
Copyright Business Recorder, 2011