THE RUPEE: dollar sharply up

The rupee surrendered its overnight gains versus dollar and euro on the currency market on Friday, dealers said. The rupee lost 36 paisa in relation to the US currency for buying at 85.10 and fell by 37 paisa for selling at 85.15, market-men said. Payment requirement pushed up US dollar demand and this factor caused decline in the rupee's value. As a result of high demand for dollar, country's foreign exchange reserves also fell to 17.01 billion dollars, they added.
INTERBANK MARKET RATES: In the final Asian session euro fell against dollar but remained above a six-week low, finding some respite after commodities bounced off their overnight lows and as investors refocused their attention on the prospects for a further rise in euro zone interest rates. But lingering worries about Greece's debt problems continued to weigh on euro, which has shed roughly five percent from a peak near $1.4940 hit in early May. A recent rout in commodities such as silver and oil has also hurt risk appetite and prompted traders to brace for the possibility of further unwinding of dollar-funded bets on risk assets.
The yuan ended up slightly against dollar on Friday, paring the morning's losses as the dollar index dropped during early European trade.
Dealers said investors were adopting a wait-and-see attitude and dollar's performance would likely guide the Chinese currency's movements in the near term as the People's Bank of China would take time to observe the effects of a series of record highs.
Indian rupee was trading at Rs 44.98 versus dollar and Malaysian Ringgit was at 3.0090 in terms of the US currency.
OPEN MARKET RATES: The rupee also came under pressure, losing its value by 30 paisa versus dollar for buying and selling at 85.10 and 85.30, they added. The rupee drifted lower in terms of euro, shedding Re.1 for buying and selling at Rs 121.50 and Rs 122.00, they said.

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Open Buying     Rs 85.10

Open Selling    Rs 85.15

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

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Buying          Rs 85.10

Selling         Rs 85.30

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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     12.00      13.75       12.25       13.90      12.98

1-Week        11.50      12.60       12.30       12.65      12.26

2-Week        11.70      12.65       12.50       12.75      12.40

1-Month       11.75      12.80       12.80       12.90      12.56

2-Months      12.40      12.90       12.85       13.00      12.79

3-Months      12.75      13.00       13.00       13.10      12.96

4-Months      12.90      13.10       13.10       13.20      13.08

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     12.00      13.75       12.25       13.90      12.98

1-Week        11.75      12.60       12.30       12.70      12.34

2-Week        12.00      12.80       12.60       12.90      12.58

1-Month       12.40      12.90       12.85       13.00      12.79

2-Months      12.90      13.10       13.10       13.20      13.08

3-Months      13.10      13.25       13.20       13.35      13.23

4-Months      13.10      13.35       13.25       13.45      13.29

5-Months      13.25      13.45       13.35       13.55      13.40

6-Months      13.30      13.50       13.40       13.60      13.45

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 lost 15 paisa in relation to dollar at currency market of Lahore on Friday.
The dollar resumed trading at Rs 85.00 (buying) and Rs 85.05 (selling) against overnight rates of Rs 84.90 and Rs 85.05. In the wake of fresh buying activity the dollar moved up and closed at Rs 85.10 and Rs 85.20 on buying and selling counters, respectively.
Likewise, British pound also improved its worth against the local currency. The pound was purchased and sold at Rs 138.90 and Rs 139.40 as against Thursday's Rs 138.50 and Rs 139.20.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained unchanged against rupee at the currency markets of Islamabad and Rawalpindi on Friday.
The dollar resumed trading at Rs 84.40 (buying) and Rs 85.00 (selling) against same last rates. It did not observe further change in the evening session and closed at Rs 84.40 (buying) and Rs 85.00 (selling).
Pound sterling opened at Rs 136.50 (buying) and Rs 137.50 (selling) against same previous rates. 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