The rupee moved both ways against dollar last week but gained steeply versus euro, dealers said. The rupee, in terms of dollar, moved down, losing 15 paisa in the open market for buying and selling at Rs 59.75 and Rs 59.85, but gained sharply versus euro for buying and selling at Rs 77.45 and Rs 77.75, respectively. In the inter-bank market, the rupee traded with modest fluctuations versus dollar at Rs 59.35 and Rs 59.36, dealers said.
The rupee-dollar parity rates tumbled on heavy buying by banks to meet the near-term payment requirements, currency analysts said.
Increased demand for dollars by corporate clients at the end of third quarter of the fiscal year pushed the local currency lower versus dollar, money experts observed.
The State Bank of Pakistan (SBP) in its second quarterly report hinted that the rupee might show weakness versus dollar on higher inflation rate.
According to the market sources, the rupee recovered some lost ground versus dollar in the middle of the week on inflows of nearly 10-12 million dollars, dealers said.
WORLD OUTLOOK FOR DOLLAR: The dollar got a boost against the world leading currencies last week from expectations of further US interest rate hike, dealers said.
Expectations of further hike in the US interest rates to curb inflation might help the dollar in terms of the major currencies, analysts said.
OPEN MARKET RATES: On March 21, the rupee opened with marginal fall versus dollar for buying and selling at Rs 59.60 and Rs 59.70, respectively. The euro traded at Rs 79.00 and Rs 79.30 for buying and selling, respectively.
On March 22, the rupee shed 10 paisa versus dollar for buying and selling at Rs 59.70 and Rs 59.80, currency dealers said. On next day, the rupee did not move to any side, as the exchange rate bulletin was not issued by SBP due to holiday on account of Pakistan Day.
On March 24, the rupee posted fresh gain of 75 paisa against euro for buying and selling at Rs 77.80 and Rs 78.10 as the dollar managed to remain firm on expectations of higher US interest rates, dealers said.
The rupee lost 10 paisa against dollar for buying and selling at Rs 59.80 and Rs 59.90 on increasing buying by banks, dealers said.
On March 25, the rupee shed five paisa against dollar for buying and selling at Rs 59.85 and Rs 59.95 on increased demand by corporate clients, dealers said.
The rupee recovered some lost ground as euro and was trading at Rs 77.50 and Rs 77.80, dealers said, adding that the single European currency came under pressure on rising demand for dollars in the international markets.
On March 26, the rupee recovered 10 paisa against dollar for buying and selling at Rs 59.75 and Rs 59.85, dealers said.
The rupee also gained five paisa versus euro for buying and selling at Rs 77.45 and Rs 77.75, respectively.
INTER-BANK RATES: On Monday, the rupee traded in the range of Rs 59.39 to Rs 59.40, showing slight weakness following demand by corporate sector to meet payment requirements, but some analysts were of the view that dollar selling by exporters helped the rupee to minimise its depreciation.
On Tuesday, the rupee-dollar parity rates hovered between Rs 59.39 and Rs 59.41 despite increasing demand for the US currency by the corporate sector, market analysts said.
On Wednesday, rates were not available as these were not issued by the central bank.
On Thursday, the rupee recovered six paisa versus dollar in the inter-bank market for buying and selling at Rs 59.33 and Rs 59.35, respectively.
On Friday, the rupee fluctuated slightly versus dollar in the inter-bank market in the process of improved demand for US currency at Rs 59.35 and Rs 59.36, marketmen said. At the week-end, the rupee maintained its overnight levels amid modest trading, they added.
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