THE RUPEE: four paisa gain in interbank market

Bullish sentiment was witnessed in the interbank market on Friday as the rupee gained four paisa against the dollar for buying and selling at 60.36 and 60.38, dealers said. Improved supply of dollars helped the rupee to recover its gains against the US currency and it is likely that the rupee might look ahead in the coming days, they said.
In the international markets, the dollar held gains against the euro and yen after a surprisingly strong reading in US service sector activity data soothed concerns the Federal Reserve may have to cut interest rates later this year. The Institute for Supply Management's services index rose in June to its highest level in a year, beating forecasts for a small decline.
Another report on Thursday from private employment services company ADP Employer Services pointed to strong job growth, leading market participants to believe that high-profile US payrolls data on Friday will be better than expected.
OPEN MARKET RATES: The rupee shed three paisa against the dollar for buying at Rs 61.08 while it did not budge any side for selling at Rs 61.15, money experts said. The rupee, however, gained 14 paisa against the euro for buying and selling at Rs 82.32 and Rs 82.42, they said.

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KERB BUYING             Rs 61.08

KERB SELLING            Rs 61.15

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

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Buying                Rs 60.32

Selling               Rs 60.34

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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       9.40       5.00        9.40           7.08

1-Week      7.00       7.50       7.50        8.00           7.50

2-Weeks     8.00       8.15       8.25        8.40           8.20

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       9.40       5.50        9.50           7.35

1-Week      7.50       8.00       8.00        8.50           8.00

2-Weeks     8.50       9.00       8.90        9.25           8.91

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 lost 10 paisa in relation to dollar on Lahore currency markets on Friday. According to currency dealers, the demand for dollars remained intact which pushed down the rupee. The dollar resumed trading at Rs 61.10 and Rs 61.20 for buying and selling, respectively. The dollar kept moving up and closed at Rs 61.15 and Rs 61.25 for buying and selling, respectively, against overnight Rs 61.05 and Rs 61.15, the dealers said.
On the contrary, the rupee recovered earlier losses against pound sterling. The British pound was purchased at Rs 122.00 and was sold at Rs 122.30 as compared to Rs 122.10 and Rs 122.40 of Thursday, dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The buying and selling rates of dollar against the rate remained unchanged at the open currency markets of Islamabad and Rawalpindi on Friday.
The dollar opened at Rs 60.90 (buying) and Rs 61 (selling) against same overnight value. It did not observe any change in the second session and closed at Rs 60.90 (buying) and Rs 61 (selling).
Pound Sterling opened at Rs 120 (buying) and Rs 120.20 (selling) against same previous rate. It did not witness any change in the evening session and closed at Rs 120 (buying) and Rs 120.20 (selling).
Copyright Business Recorder, 2007