THE RUPEE: all-round falls

All-round declines were seen on the currency market on Thursday as the rupee failed to retain its firmness against dollar and euro, experts said. The rupee drifted lower versus dollar, shedding 16 paisa for buying at 85.80 and losing 17 paisa for selling at 85.85, they said.
INTERBANK MARKET RATES: Forward dollar buying was again witnessed on the currency market but intervention helped the rupee to resist sharp decline in terms of the greenback, experts said. In the fourth Asian trade euro advanced to a one-week high against dollar as strong commodity prices and a report that China is interested in buying "bailout bonds" for Portugal spurred active stop-loss buying of the single currency.
The market saw sizable stop-loss euro purchases at $1.4120 and $1.4150, encouraged by a Financial Times article quoting the chief executive of the European Financial Stability Facility as saying China was "clearly interested" in buying bonds for the Portugal bailout to be issued in mid-June.
A convincing recovery in commodity prices, in which the key US crude oil futures extended gains in Asia to above $101.50, also spurred active broad-based corrective buying of euro in Asian trade. The euro could revisit $1.42, but lingering uncertainty over debt problems in Greece and other euro zone countries was expected to limit strong follow-through moves.
Indian rupee was available at Rs 45.32 versus dollar, Malaysian ringgit was at 3.0420 in terms of the greenback and Chinese Yuan was at 6.4873 in terms of the US currency. Interbank buy/sell rates for taka against dollar on Thursday: 73.35/73.44 (previous 73.25/73.39). Call Money Rates: 6.50-12.00 percent (previous 6.00-12.00) percent.
OPEN MARKET RATES: The rupee followed the interbank trend as it was down by 20 paisa in terms of the US currency for buying at 86.00 and shed 30 paisa for selling at 86.30, they added. The rupee also lost Rs 1.42 in relation to euro for buying at Rs 121.70 and it came down after losing Rs 1.52 for selling at Rs 122.30, they said.

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Open Buying     Rs.86.00

Open Selling    Rs.86.30

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

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Buying          Rs.85.80

Selling         Rs.85.85

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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     13.75     13.90       13.90       13.95       13.88

1-Week        12.50     13.40       13.30       13.45       13.16

2-Week        12.75     13.25       13.25       13.35       13.15

1-Month       12.75     13.25       13.25       13.30       13.14

2-Months      12.80     13.20       13.20       13.30       13.13

3-Months      12.90     13.20       13.25       13.30       13.16

4-Months      12.90     13.25       13.25       13.30       13.18

5-Months      13.00     13.35       13.35       13.40       13.28

6-Months      13.20     13.40       13.35       13.50       13.36

9-Months      13.25     13.50       13.50       13.60       13.46

1-Year        13.40     13.60       13.55       13.70       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     13.80     13.90       13.90       13.95       13.89

1-Week        12.60     13.45       13.35       13.50       13.23

2-Week        12.80     13.35       13.30       13.40       13.21

1-Month       12.90     13.35       13.30       13.40       13.24

2-Months      12.90     13.35       13.30       13.40       13.24

3-Months      13.10     13.45       13.30       13.50       13.34

4-Months      13.10     13.40       13.35       13.50       13.34

5-Months      13.25     13.50       13.40       13.60       13.44

6-Months      13.30     13.60       13.45       13.65       13.50

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 Pak rupee failed to maintain upward slide and lost 20-paisa on buying side and 10-paisa on selling side against the dollar in the local currency market on Thursday.
According to the currency dealers, because of fresh demand for dollar helped its appreciation in the open market. The dollar was traded at Rs 86.00 and Rs 86.30 on buying and selling side against the overnight closing of Rs 85.80 and Rs 86.20, respectively.
Similarly, the rupee remained under pressure and declined against the pound sterling. The pound was purchased and sold at Rs 140.00 and Rs 141.00, as compared to Wednesday closing of Rs 139.60 and Rs 140.00, respectively, the dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained unchanged against the rupee at the open currency markets of Islamabad and Rawalpindi here on Thursday.
The dollar resumed trading at Rs 84.60 (buying) and Rs 85.20 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 84.60 (buying) and Rs 85.20 (selling).
Pound Sterling opened at Rs 136.50 (buying) and Rs 137.60 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.50 (buying) and Rs 137.60 (selling).
Copyright Business Recorder, 2011