Dollar moves both ways

RECORDER REPORT

KARACHI: The rupee moved both ways against dollar on the currency market on Friday in process of trading, money dealers said.

INTER-BANK MARKET RATES: The rupee resisted fresh losses versus dollar, gaining six paisa for buying at 87.04 and rose by seven paisa for selling at 87.08, they said.

In the final session in Asia euro edged higher as traders covered short positions after its recent drop to a five-week low, but the single currency was expected to remain in a downtrend amid fears the euro zone debt crisis is spiralling out of control.

Selling pressure on euro has intensified this week on signs that contagion was spreading to core euro zone countries such as France, and the currency is on track for its biggest one-week drop since early September.

The spotlight fell on Spain on Thursday, which had to pay the highest rate to sell its 10-year debt since 1997, just shy of the seven percent mark seen as unsustainable.

The euro, however, showed some resilience in the wake of the Spanish bond auction, getting a boost from short-covering and holding above a five-week trough of $1.3421 hit on Thursday on trading platform EBS.

The dollar was at Rs 51.38 versus the Indian rupee, the greenback in relation to the Malaysian ringgit at 3.1665, in terms of the Chinese yuan at 6.363.

OPEN MARKET RATES: Against the inter-bank trend, the rupee continued its decline versus dollar, losing 10 paisa against for buying and selling at 87.10 and 87.20, they said.

The rupee also lost 31 paisa in terms of the euro for buying and selling at Rs 116.90 and Rs 117.40, they said.

LAHORE

The Pak rupee maintained downward move for another day and extended further loss against the dollar in the kerb market on Friday.

According to the moneychangers, the dollar witnessed fresh demand that helped its appreciation in the open market and pushed the rupee's value down by 20 paisa. The dollar was ended higher at Rs 87.00 and Rs 87.50 against the overnight closing of Rs 86.80 and Rs 87.30, respectively, the dealers said.

Similarly, the rupee failed to maintain its day earlier position and remained under pressure against the pound sterling. The pound was purchased and sold at Rs 137.20 and Rs 137.60, as compared to Thursday closing of Rs 136.50 and Rs 137.50, respectively, the dealers added.

ISLAMABAD

The rupee-dollar parity remained unchanged at the open currency markets of Islamabad and Rawalpindi here on Friday.

The dollar opened at Rs 87.60 (buying) and Rs 88.05 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 87.60 (buying) and Rs 88.05 (selling).

Pound Sterling opened at Rs 137.80 (buying) and Rs 137.90 (selling) against the overnight value. It did not observe further change in the evening session and closed at Rs 137.80 (buying) and Rs 137.90 (selling).