An increase of 3.86 percent in the country's remittances helped the rupee to gain strength in the interbank market, picking up seven paisa versus the dollar for buying at Rs 59.41 and rose by five paisa for selling at Rs 59.45, respectively. According to the money experts, the inflows of remittances into the country improved from Saudi Arabia, US, United Arab Emirates and especially from the GCC states during December 2004.
They said that this was an occasion for appreciation of the rupee because when rising remittance pushed the local currency up, the exporters came back to sell dollars on apprehension of further erosion in the greenback's value.
In the international arena a bunch of factors helped the dollar to rebound from five-year lows against the yen in Asian trade, dealers said.
Commenting on the greenback's recovery, they said rising expectations that the US central bank may hike interest rates sharply to counter inflation and speculations that the US President likely to discuss more steps against the ballooning US current account and budget deficits.
In the meantime, the president of the European Central Banb (ECB) Trichet called for more flexibility in the Asian currencies and also hinted that the single European currency alone can't bear the full burden of the dollar's weakness versus the world currencies.
OPEN MARKET RATES: In line with the interbank market, the rupee posted fresh gain of five paisa in terms of the dollar for buying and selling at 59.55 and at 59.65, dealers said.
Incidentally, the euro's slide in the overseas markets, provided the ground to the local currency to come out of the weakness and ascended with improvement of 55 paisa for buying and selling at Rs 77.20 and Rs 77.50, dealers said.
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Kerb Buying Rs 59.55
Kerb Selling Rs 59.65
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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Tuesday.
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Buying Rs 59.41
Selling Rs 59.45
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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 7.40 7.45 7.40 7.45 7.43
1-Week 6.50 7.00 7.00 7.25 6.94
2-Week 4.75 5.00 5.25 5.50 5.13
1-Month 4.25 4.50 4.75 4.90 4.60
2-Months 4.00 4.25 4.25 4.50 4.25
3-Months 4.60 5.10 5.00 5.50 5.05
4-Months 4.75 5.20 5.00 5.50 5.11
5-Months 4.80 5.20 5.25 5.60 5.21
6-Months 4.90 5.10 5.50 5.70 5.30
9-Months 5.00 5.25 5.70 5.90 5.46
1-Year 5.50 5.75 6.00 6.25 5.88
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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 7.40 7.50 7.40 7.50 7.45
1-Week 7.25 7.50 7.50 7.75 7.50
2-Week 5.00 5.25 5.50 5.75 5.38
1-Month 5.00 5.50 5.75 6.00 5.56
2-Month 5.20 5.40 5.75 5.90 5.56
3-Month 5.50 5.75 6.25 6.50 6.00
4-Month 5.60 5.80 6.00 6.30 5.93
5-Month 5.75 6.00 6.25 6.50 6.13
6-Month 6.00 6.50 6.75 7.00 6.56
9-Month 5.80 6.10 6.50 6.75 6.29
1-Year 6.25 6.50 6.75 7.00 6.63
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RUPEE IN LAHORE: The dollar-rupee parity remained unchanged amid sluggish trading trend in local currency markets on Tuesday.
According to the currency dealers, there was no change in the dollar's demand and supply situation, which helped the local currency maintain its overnight position. The dollar resumed trading at Monday's closing levels of Rs 59.60 and Rs 59.70 on buying and selling counters, respectively. The dollar witnessed fractional change in its value during the day's trading but finally closed at opening levels, the dealers added.
However, the rupee registered marginal gain and improved its worth against the pound sterling. The British pound was purchased at Rs 110.40 and was sold at Rs 110.80 as compared to Rs 110.50 and Rs 111.00 of Monday, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar opened at Rs 59.60 (buying) and Rs 59.70 (selling) against same overnight value. It did not observe any further change in the evening session and closed at Rs 59.60 (buying) and Rs 59.70 (selling).
Pound sterling opened at Rs 111.50 (buying) and Rs 111.70 (selling) against same last rate. It did not observe any change in the second spell and closed at Rs 111.50 (buying) and Rs 111.70 (selling).
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