THE RUPEE: sharp gains versus euro

11 May, 2004

The rupee gained Rs 1.25 in terms of the euro in the open market on Monday for buying and selling at Rs 68.64 and Rs 68.95, respectively, dealers said.
The euro lost most of its value in the international market as dollar started showing its muscle versus major currencies, they added.
The rupee, however, lost four paisa versus the dollar for buying and selling at Rs 58.07 and Rs 58.12 due to rising value of the greenback, dealers said.
The rupee extended its weekend fall in the interbank market, sliding five paisa for buying and selling at Rs 57.60 and Rs 57.62, dealers said.
Leading banks were in the market to meet the fresh demand for payments, they added. They also said the rupee may face more erosion in the coming days.
The dollar is gaining its strength in the local market as a result of the warning by World Bank, and the dollars' buying by State Bank of Pakistan (SBP) from the interbank market, and interbank market is meeting its requirements from the open market, currency experts said.
Basically, this could be a leading factor for weakening of the rupee, they added. The heavy payments at the end of the fiscal year and short supply of dollars pushed the rupee down in the open market, they said.
They said that the dollar would continue its rise on the back of positive US economic outlook and continued increase in oil prices in the world market due to geo-political reasons.
They said that dollar's rising value is widening the gap in the open and interbank market rates, which is no doubt a great cause of concern for the central bank.
In line with the open market trend, the rupee-dollar parity rates went up in the interbank for buying and selling at Rs 57.60 and Rs 57.62, moneychangers said.
In the world market, the dollar soared after hitting eight-month high versus the yen on strong US job data, dealers said and added that positive economic reports in the US propelled market players for an early increase in the interest rate.

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Kerb Buying Rs 58.07
Kerb Selling Rs 58.12
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Interbank closing rates for dollar on Monday.

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Buying Rs 57.60
Selling Rs 57.62
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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 0.10 0.50 0.20 0.75 0.39
1-Week 0.30 0.80 0.60 1.20 0.73
2-Week 1.00 1.25 1.50 1.75 1.38
1-Month 1.35 1.45 1.55 1.70 1.51
2-Months 1.40 1.50 1.70 1.80 1.60
3-Months 1.55 1.65 1.85 2.05 1.78
4-Months 1.60 1.70 1.90 2.00 1.80
5-Months 1.70 1.90 2.00 2.10 1.93
6-Months 1.80 1.95 2.15 2.30 2.05
9-Months 2.10 2.30 2.50 2.70 2.40
1-Year 2.30 2.50 2.70 2.90 2.60
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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 0.20 0.60 0.30 0.80 0.48
1-Week 0.40 1.00 0.75 1.40 0.89
2-Week 1.25 1.50 1.75 2.00 1.63
1-Month 1.40 1.60 1.80 2.00 1.70
2-Month 1.60 1.70 1.80 1.90 1.75
3-Month 1.70 1.90 2.10 2.30 2.00
4-Month 1.80 2.00 2.20 2.40 2.10
5-Month 1.90 2.10 2.30 2.50 2.20
6-Month 2.00 2.20 2.40 2.60 2.30
9-Month 2.30 2.50 2.70 2.90 2.60
1-Year 2.40 2.60 2.80 3.00 2.70
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RUPEE IN LAHORE: The rupee showed stability as Pak rupee-dollar parity remained unchanged, amid sluggish trading trend in the local currency markets, on Monday.
The dollar's demand and supply situation remained intact on the previous week closing level, which provided stability to the local currency. The dollar resumed trading at Saturday's closing rates of Rs 58.10 and Rs 58.20 on buying and selling counters, respectively. Owing to lacking fluctuation in the greenback's value, the opening rates continued to prevail throughout the day, the currency dealers said.
Moreover, the rupee showed strength and registered improvement in its worth against the British pound. The pound's buying rate further declined from Saturday's closing rate of Rs 103.55 to Rs 103.20, while selling rate moved down from the previous closing of Rs 103.95 to Rs 103.65, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the currency exchange establishments of Islamabad and Rawalpindi on Monday.
The dollar opened at Rs 58.10 (buying) and Rs 58.20 (selling) against he same overnight value. It did not observe any further change in the evening session, and closed at Rs 58.10 (buying) and Rs 58.20 (selling).
The pound sterling opened at Rs 103.50 (buying) and Rs 103.70 (selling) against the last rate of Rs 104 (buying) and Rs 104.20 (selling). It also did not observe any further change in the evening session, and closed at Rs 103.50 (buying) and Rs 103.70 (selling).
The Canadian dollar opened at Rs 41.65 (buying) and Rs 41.75 (selling) against the last rate of Rs 41.80 (buying) and Rs 41.90 (selling). It did not observe any further change in the evening session, and closed at Rs 41.65 (buying) and Rs 41.75 (selling).

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