THE RUPEE: dollar above 85

The dollar extended its rise versus the rupee on the currency market on Saturday following strong buying by the importers, dealers said. Market-men said that the all major banks bought approximately 50-70 million dollars to meet the importers' demand to clear the payments.
After a long time, nearly 40-50 paisa difference was seen between the open and interbank market rates, they said. Now, how the money market will move would be clear next week, if the dollar buying persisted the rupee may lose its value in the open market, too, they said.
INTERBANK MARKET RATES: The rupee fell sharply versus dollar, losing 50 paisa for buying and selling at 85.20 and 85.25, they said. At the weekend euro headed for its worst week against dollar since January and further losses were seen as likely, as sovereign debt concerns reappeared after a German news report, later denied, suggested Greece had raised the possibility of leaving the euro zone.
Spiegel Online reported euro zone finance ministers were meeting in Luxembourg on Friday to discuss Greece, including the issue of its possible exit from the currency bloc. Greece, through its Finance Ministry, later denied it was considering leaving the euro zone. The Greece headlines, however, were enough to send investors further unwinding long positions on the euro, which hit a low of $1.43150 -- its weakest level since April 19 on electronic trading platform EBS.
Market participants said the pullback in the euro was a natural correction in a currency that, at one point, had surged more than 10 percent so far this year.
"What's happening today also reflects the fact that markets are increasingly unwilling to hold long euro positions into the weekend," said Vassili Serebriakov, senior currency strategist, at Wells Fargo in New York.
OPEN MARKET RATES: The rupee lost 20 paisa against dollar for buying and selling at 84.75 and 84.90 in process of strong dollar buying, they added. The rupee, however, posted steep gain in terms of euro, picking up Rs 1.86 for buying and selling at Rs 120.60 and Rs 121.10, they said.

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Open Buying     Rs.84.75

Open Selling    Rs.84.90

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

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Buying          Rs.85.20

Selling         Rs.85.25

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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     11.25      12.75      11.50       13.00       12.13

1-Week        11.50      12.30      12.15       12.40       12.09

2-Week        11.60      12.40      12.30       12.50       12.20

1-Month       11.75      12.70      12.65       12.75       12.46

2-Months      12.40      12.90      12.85       13.00       12.79

3-Months      12.75      12.90      12.95       13.05       12.91

4-Months      12.85      13.00      13.00       13.20       13.01

5-Months      13.00      13.35      13.25       13.40       13.25

6-Months      13.20      13.35      13.30       13.40       13.31

9-Months      13.25      13.50      13.50       13.60       13.46

1-Year        13.40      13.60      13.50       13.65       13.54

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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     11.25      12.90      11.50       13.00       12.16

1-Week        11.90      12.40      12.25       12.50       12.26

2-Week        12.20      12.50      12.40       12.60       12.43

1-Month       12.50      12.85      12.80       12.90       12.76

2-Months      12.90      13.10      13.10       13.25       13.09

3-Months      13.10      13.30      13.30       13.40       13.28

4-Months      13.25      13.40      13.30       13.50       13.36

5-Months      13.30      13.50      13.40       13.60       13.45

6-Months      13.35      13.55      13.50       13.65       13.51

9-Months      13.50      13.65      13.60       13.70       13.61

1-Year        13.50      13.75      13.60       13.85       13.68

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RUPEE IN LAHORE: The rupee remained under pressure and lost its worth by 20-paisa on buying side and 25-paisa on selling side against the dollar in the open currency market on Saturday.
According to the currency dealers, the rupee opened on a negative sign and remained under pressure throughout the day. At the end of trading, the dollar was closed higher at Rs 84.80 and Rs 85.00, as its buying and selling rates against the overnight closing of Rs 84.60 and Rs 84.75, respectively.
However, the rupee-pound sterling parity remained unchanged at its day earlier closing level amid low trading activity in the local market. The pound was purchased and sold at its Friday closing of Rs 138.70 and Rs 139.50 on buying and selling sides, 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 Saturday.
The dollar resumed trading at Rs 84.50 (buying) and Rs 85.00 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 84.50 (buying) and Rs 85.00 (selling).
Pound Sterling opened at Rs 136.50 (buying) and Rs 137.50 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.50 (buying) and Rs 137.50 (selling).
Copyright Business Recorder, 2011