THE RUPEE: dollar moves both ways

The rupee performed on both sides against dollar on the currency market on Saturday, dealers said. The rupee continued weakness in relation to dollar, losing 16 paisa for buying at 87.40 and fell by 18 paisa for selling at 87.45, they said.
INTERBANK MARKET RATES: At the weekend, ratings downgrades for Italy and Spain knocked the wind out of euro, and traders said anxiety about Europe's economy and fragile banks will likely continue to hobble it in the weeks ahead.
Higher-yielding, growth-sensitive currencies such as the Canadian and Australian dollars should fare better, especially after data showed US hiring rose more than expected last month, easing some concern about the world's biggest economy.
If the view that the United States can avoid recession takes hold, investors may renew borrowing US dollars at near-zero interest rates to fund riskier but more lucrative trades in other currencies and assets, traders said.
That's a practice that fell out of favour in August and September as markets fretted over slower US growth and a worsening euro zone sovereign debt and banking crisis.
OPEN MARKET RATES: The rupee gained 10 paisa versus dollar for buying 87.30 while it did not move any side at 88.80, for selling they added. The rupee, however, gained 33 paisa in relation to euro for buying and selling at Rs 118.85 and Rs 119.35, they said.

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Open Buying     Rs 88.30

Open Selling    Rs 88.80

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

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Buying          Rs 87.40

Selling         Rs.87.45

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RUPEE IN LAHORE: The Pak rupee maintained downward slide and 20-paisa on buying side and 10-paisa on selling side in relation to the greenback in the local currency market on Saturday.
According to the currency dealers, the dollar was opened on a positive sign and registered visible gain. At the end of trading, the dollar was closed at Rs 88.80 and Rs 89.10 as its buying and selling rates against the Friday closing of Rs 88.60 and Rs 89.00, respectively.
Similarly, the rupee remained under pressure and was further declined against the pound sterling. The pound was purchased and sold at Rs 138.30 and Rs 139.00 as compared to overnight closing of Rs 137.50 and Rs 138.50 respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the open currency markets of Islamabad and Rawalpindi here on Saturday.
The dollar opened at Rs 88.50 (buying) and Rs 88.60 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 88.50 (buying) and Rs 88.60 (selling).
Pound Sterling opened at Rs 137.80 (buying) and Rs 137.90 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 137.80 (buying) and Rs 137.90 (selling).
Copyright Business Recorder, 2011