THE RUPEE: dollar recoups

The rupee gave up its overnight firmness in relation to dollar on the currency market at the weekend, experts said. The rupee dropped by 11 paisa in terms of the greenback for buying at 85.74 and it shed 10 paisa for selling at 85.77, they said.
INTERBANK MARKET RATES: At the weekend euro fell for a third straight day, with more losses viewed as likely in the upcoming week, weighed down by wranglings about how to handle Greece's debt crisis and diminished expectations about euro zone rate hikes. The uncertainty should continue next week, analysts said, with a consensus agreement unlikely to be reached next week before a June 20 euro zone finance ministers' meeting to discuss ways to secure more funding for Greece. That was a pre-condition for disbursement of the next tranche of its current bailout in July.
"Tension in the European periphery is again rising and has potential to feed into a higher risk premium on the euro in coming weeks, as we enter a critical phase around securing a more long-term solution for Greece," said Jens Nordvig, head of G10 FX research at Nomura Securities in New York.
OPEN MARKET RATES: The rupee shed 10 paisa against dollar for buying and selling at 85.75 and 85.95 in process of trading, they added. The rupee, however, gained 83 paisa versus euro for buying at Rs 122.76 and Rs 123.26, they said.

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Open Buying     Rs.85.75

Open Selling    Rs.85.95

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

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Buying          Rs.85.74

Selling         Rs.85.77

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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      12.75      12.25       13.00       12.50

1-Week        12.25      13.00      12.75       13.10       12.78

2-Week        12.50      13.00      12.90       13.10       12.88

1-Month       12.75      13.05      13.10       13.20       13.03

2-Months      12.80      13.20      13.20       13.30       13.13

3-Months      12.90      13.30      13.25       13.35       13.20

4-Months      13.00      13.35      13.30       13.40       13.26

5-Months      13.10      13.35      13.35       13.40       13.30

6-Months      13.25      13.45      13.40       13.50       13.40

9-Months      13.30      13.60      13.60       13.70       13.55

1-Year        13.40      13.65      13.65       13.75       13.61

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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      12.75      12.25       13.00       12.50

1-Week        12.40      13.00      12.80       13.10       12.83

2-Week        12.50      13.05      13.00       13.15       12.93

1-Month       12.90      13.25      13.25       13.30       13.18

2-Months      12.95      13.30      13.25       13.35       13.21

3-Months      13.10      13.35      13.30       13.40       13.29

4-Months      13.10      13.35      13.30       13.40       13.29

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 rupee recovered its day earlier loss and gained five-paisa against the dollar in the open market on Saturday.
According to the currency dealers, the dollar's demand could not remain intact that helped rupee recovery in the local market. The dollar was ended marginally lower at Rs 85.70 and Rs 85.90, as its buying and selling rates against the overnight closing of Rs 85.75 and Rs 85.95, respectively.
Similarly, the rupee maintained upward slide and further appreciated against the pound sterling. The pound was declined to Rs 140.00 and Rs 140.60 on buying and selling side, as compared to day earlier closing of Rs 140.20 and Rs 140.80, respectively, the dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained firm against the rupee at the open currency markets of Islamabad and Rawalpindi here on Saturday.
The dollar resumed trading at Rs 85.55 (buying) and Rs 85.75 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.55 (buying) and Rs 85.75 (selling).
Pound Sterling opened at Rs 136.20 (buying) and Rs 136.65 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.30 (buying) and Rs 136.70 (selling).
Copyright Business Recorder, 2011