THE RUPEE: all-round gains

The rupee managed to retain its overnight surge versus dollar and euro on the currency market on Friday, dealers said. The rupee gained 33 paisa against dollar for buying at 86.51 and rose by 32 paisa for selling at 86.56, they said.
INTERBANK MARKET RATES: In the final Asian trade the euro dipped but hovered above an intraday low hit after S&P cut Spain's credit rating, and was on track for its biggest weekly rally since January after getting lifted by a flurry of short-covering.
The euro slipped 0.1 percent to $1.3770, having trimmed its losses after dipping to as low as $1.3723 following S&P's downgrade of Spain's credit rating to AA-minus. The move mirrored last week's downgrade of Spain by Fitch. S&P's downgrade of Spain came shortly after Fitch on Thursday cut the ratings of UBS AG and placed several other European banks on credit watch negative.
The euro, however, was still up 2.8 percent this week, a gain that if maintained through Friday would mark the strongest weekly performance since mid-January. The Indian rupee strengthened on Friday, supported by strong domestic equities and a rise in the euro that was triggered by views that European policymakers were inching closer to a plan to tackle the region's debt crisis.
The yuan closed up slightly against dollar on Friday due to bank clients' dollar purchases late in the session, but traders said investors trimmed their expectations of yuan appreciation in the near term amid renewed Chinese-US tensions on the currency front.
OPEN MARKET RATES: The rupee picked up 10 paisa in terms of dollar for buying and selling at 87.10 and 87.60, they added. The rupee also rose by 57 paisa against euro for buying and selling at Rs 119.06 and Rs 119.56, they said.

========================

Open Buying     Rs 86.51

Open Selling    Rs 86.56

========================

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

========================

Buying          Rs 87.10

Selling         Rs 87.60

========================

=================================================================

Repo Rates (Yield p a)

-----------------------------------------------------------------

Tenor       Low Bid   High Bid   Low Offer   High Offer   Average

=================================================================

Overnight     11.90     11.90       11.90       11.95       11.91

1-Week        11.80     11.95       11.85       12.00       11.90

2-Week        11.80     11.95       11.90       11.95       11.90

1-Month       11.80     11.90       11.90       11.95       11.89

2-Months      11.80     11.85       11.85       11.90       11.85

3-Months      11.70     11.85       11.85       11.90       11.83

4-Months      11.70     11.80       11.85       11.90       11.81

5-Months      11.65     11.80       11.80       11.85       11.78

6-Months      11.65     11.75       11.80       11.85       11.76

9-Months      11.70     11.80       11.80       11.90       11.80

1-Year        11.75     11.85       11.85       11.90       11.84

=================================================================

Call Rates (Yield p a)

-----------------------------------------------------------------

Tenor       Low Bid   High Bid   Low Offer   High Offer   Average

=================================================================

Overnight     11.90     11.95       11.90       12.00       11.94

1-Week        11.90     12.00       12.00       12.10       12.00

2-Week        11.90     12.00       12.00       12.20       12.03

1-Month       11.85     12.00       11.90       12.10       11.96

2-Months      11.85     11.90       11.90       12.00       11.91

3-Months      11.80     11.95       11.90       12.00       11.91

4-Months      11.80     11.95       11.90       12.00       11.91

5-Months      11.80     11.90       11.90       12.00       11.90

6-Months      11.85     11.95       11.95       12.00       11.94

9-Months      11.90     12.10       12.10       12.25       12.09

1-Year        11.90     12.15       12.10       12.25       12.10

=================================================================

RUPEE IN LAHORE: The Pak rupee maintained upward slide and further appreciated its value by 30-paisa on buying side and 20-paisa on selling side against the dollar in the local currency market on Friday.
According to the currency dealers, the dollar's demand could not remain intact for the second consecutive day that helped rupee appreciation in the open market. At the end of trading, the dollar was declined to Rs 87.20 and Rs 87.60 on buying and selling counters against the Thursday closing of Rs 87.50 and Rs 87.80, respectively.
The rupee also showed strength and was improved against the pound sterling. The pound was purchased and sold at Rs 136.50 and Rs 137.00 against the day earlier 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 Friday.
The dollar opened at Rs 88.55 (buying) and Rs 88.65 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 88.55 (buying) and Rs 88.65 (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).
Copyright Business Recorder, 2011