THE RUPEE: all-round fall

The rupee depreciated against dollar and euro on the currency market on Friday in process of trading, dealers said. The rupee extended overnight slide in terms of dollar, dropping 12 paisa for buying at 86.58 and shedding 14 paisa on the selling counter at 86.62, they said.
INTERBANK MARKET RATES: Commenting on the current position on the money market some experts said that after nearly two-month the rupee is trading at a realistic level as dollars' supply eases, which caused no big gap between the interbank and open market rates.
During the final Asian session euro held steady above its recent one-month low on Friday, but market players were sceptical that it would see a sustained bounce due to uncertainty over whether Italy will make progress on fiscal reforms under new leadership.
RUPEE IN LAHORE: The Pak rupee remained under pressure and lost 20-paisa on buying side and 10-paisa on selling side in relation to the greenback in the local currency market on Friday.
According to the currency dealers, the dollar commenced trading at its overnight closing of Rs 86.10 and Rs 86.60 as its buying and selling rates, respectively. Because of fresh buying, the dollar maintained upward slide and finally ended at Rs 86.30 and Rs 86.70 on buying and selling side, respectively.
Likewise, rupee failed to maintain rising trend and lost its worth against the pound sterling. The pound's buying and selling rates were improved from Thursday's closing of Rs 136.30 and Rs 137.30 to Rs 136.80 and Rs 137.50, respectively, the dealers said.
The euro has gained some reprieve after a sell-off earlier in the week when Italian 10-year bond yields shot above the seven percent level that is widely regarded as unsustainable. Relief that yields at an Italian bond sale on Thursday remained below seven percent lent support to the single currency, as did signs of easing political deadlock in Rome and Greece.
Former European Commissioner Mario Monti has emerged as favourite to replace Italian Prime Minister Silvio Berlusconi within days and lead an emergency government. In Greece, former European Central Bank Vice President Lucas Papademos was appointed to head an interim crisis cabinet in Greece.
The euro was little changed from late US trade on Thursday, changing hands at $1.3621 and staying above a one-month low of $1.3484 touched on Thursday. For the week, the euro is still down about 1.5 percent. The dollar versus Indian rupee was available at Rs 50.26, against the Malaysian ringgit, it was trading at 3.1480 and against the Chinese yuan the dollar was at 6.3434.
OPEN MARKET RATES: The rupee reversed its overnight firmness against dollar, losing 20 paisa for buying at 86.50 and 10 paisa for selling at 86.70, they said. The rupee also followed the same pattern in terms of euro, shedding Rs 1.22 for buying at Rs 117.06 and selling at Rs 117.56, they said.

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Open Buying     Rs 86.58

Open Selling    Rs 86.62

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

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Buying          Rs 86.50

Selling         Rs 86.70

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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     11.75     11.90      11.80       11.90        11.84

1-Week        11.60     11.80      11.75       11.90        11.76

2-Week        11.65     11.75      11.75       11.85        11.75

1-Month       11.65     11.75      11.80       11.85        11.76

2-Months      11.65     11.80      11.80       11.90        11.79

3-Months      11.65     11.80      11.80       11.90        11.79

4-Months      11.65     11.80      11.80       11.85        11.78

5-Months      11.65     11.80      11.80       11.85        11.78

6-Months      11.65     11.80      11.80       11.85        11.78

9-Months      11.70     11.80      11.80       11.85        11.79

1-Year        11.75     11.85      11.85       11.90        11.84

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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     11.75     11.90      11.90       11.90        11.86

1-Week        11.70     11.85      11.90       12.00        11.86

2-Week        11.75     11.85      11.90       12.00        11.88

1-Month       11.70     11.90      11.85       12.00        11.86

2-Months      11.75     11.90      11.85       11.95        11.86

3-Months      11.80     11.90      11.90       11.95        11.89

4-Months      11.80     11.90      11.90       11.95        11.89

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      11.85     12.00      12.00       12.10        11.99

1-Year        11.90     12.00      12.10       12.15        12.04

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RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi here on Friday.
The dollar opened at Rs 87.60 (buying) and Rs 88.05 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 87.60 (buying) and Rs 88.05 (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