Minor changes were witnessed on the money market on Thursday as the rupee moved cautiously against the dollar in the process of trading activity, dealers said. Supply position was matching with demand so that the rates could maintain firm trend and it looks that the rates may not fluctuate sharply in the coming days, marketmen observed.
Reports show that the State of Bank of Pakistan will announce its latest monetary policy decision on March 29, the central bank said in a statement on Wednesday. The announcement will be made in a news release.
The central bank raised its key policy rate by 25 basis points to 10.25 percent in January in the face of high fiscal and current account deficits and continuing inflation pressure.
In the fourth Asian trade, the dollar rose on Thursday as many of its peers weakened after more central banks opted to shift to a dovish policy stance in the wake of deteriorating economic prospects.
The latest switch came from the Reserve Bank of New Zealand (RBNZ), which stunned markets on Wednesday by saying the next move in rates is likely to be down, joining a growing list of central banks that had turned dovish.
The dollar index against a basket of six major currencies was 0.17 percent higher at 96.942 and headed for its third day of gains.
With many of its peers going on the defensive, the dollar has been able to brush aside a decline by benchmark US Treasury yields to 15-month lows.
The euro was a touch higher at $1.1252. The single currency has still lost 0.45 percent this week with the benchmark 10-year bund yield having fallen to 2-1/2-year low of minus 0.09 percent.
The euro's upside was limited after European Central Bank President Mario Draghi said a hike in interest rates could be further delayed.
The dollar was trading against the Indian rupee at Rs 69.013, the greenback was at 4.075 in terms of the Malaysian ringgit and the dollar was available at 6.731 versus the Chinese yuan.
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Open Bid Rs.140.50
Open Offer Rs.141.00
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Bid Rate Rs.140.29
Offer Rate Rs.140.30
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According to currency dealers, the greenback gained 25 paisas and ended higher for buying at Rs 141.45 against the overnight closing rate of Rs 141.20 whereas it firmly sustained its opening trend for selling at Rs 141.50.
Moreover, the local currency recovered 20 paisas against the pound sterling for buying at Rs 184.40 against the opening rate of Rs 184.60 while it remained unchanged for selling at Rs 185.50, they added.
The dollar opened at Rs140.90 (buying) and Rs 141 (selling) against last rate of Rs140.85 (buying) and Rs 140.95 (selling). It closed at Rs140.90 (buying) and Rs 141 (selling).
The buying and selling rates of one tola of gold was Rs. 59,400 (selling) and Rs 59,000(buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.