The rupee extended overnight gains versus dollar in the inter-bank market on Tuesday, picking up 30 paisa at Rs 60.55 and Rs 60.60 on the buying and selling counters, respectively. Last week, the SBP decision had made the availability of dollars easier in the market, which boosted the rupee versus the greenback, dealers said.
The currency market welcomed the belated decision by the State Bank of Pakistan (SBP) to check currency-related speculation as a result of sharp depreciation of the rupee versus dollar during the first quarter of the current fiscal year, analysts and experts noted.
Despite the cautionary measures by the SBP, the loopholes still need to be done away with to keep hold on the value of the "capital good" expected to be imported. Under the circumstances, the importers might exercise over-invoicing which could hurt the rupee value.
The bank must keep a check over the exporters' attitude because it came under observation that when the rupee shows devaluation, exporters hold back their export proceeds to gain profit from dollar's higher rate, they added.
The State Bank of Pakistan (SBP) has taken several bold steps to stabilise the rupee versus the dollar, money experts said.
Since the new fiscal year started, the rupee had lost nearly five percent in terms of dollar on forward dollar buying by importers, they added.
Besides, the exporters held back export proceeds to gain profit on further depreciation of the rupee, they said.
The rupee was at 61.50 per dollar in the inter-bank market in mid-October, they said.
At the end of last week, the central bank decided to take necessary measures to ward off speculative trading in foreign currency. In fact, the central bank move to start paying from the reserves for oil imports and suspension of forward contract payments played important role in stabilising the rupee these days, money experts said.
Since the fiscal year started, the rupee began losing its value versus the greenback on higher dollar demand in the inter-bank market for oil import payments.
The central bank announced measures to curb speculation, including changes in regulations for forward bookings and advance payments, dealers said.
Recent corrective measures might help the rupee to recover further ground versus the dollars, they expect.
OPEN MARKET RATES: The rupee posted fresh gain of 75 paisa versus dollar for buying and selling at Rs 60.90 and Rs 61.00 on easy supply of the US currency, dealers said.
The rupee gained Rs 1.40 versus the euro for buying and selling at Rs 76.45 and Rs 76.75, respectively.
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Kerb buying Rs 60.90
Kerb selling Rs 61.00
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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Tuesday.
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Buying Rs.60.55
Selling Rs 60.60
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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 0.30 1.25 0.60 1.75 0.98
1-Week 1.00 1.50 1.75 2.25 1.63
2-Week 2.25 2.50 2.75 3.00 2.63
1-Month 2.60 2.90 3.00 3.30 2.95
2-Months 3.30 3.60 3.60 4.00 3.63
3-Months 3.10 3.50 3.40 3.90 3.48
4-Months 3.30 3.70 3.60 4.10 3.68
5-Months 3.40 3.90 3.70 4.30 3.83
6-Months 3.60 4.00 3.90 4.40 3.98
9-Months 3.80 4.10 4.10 4.50 4.13
1-Year 3.90 4.30 4.20 4.75 4.29
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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 0.50 1.50 0.75 2.00 1.19
1-Week 1.50 2.00 2.25 2.75 2.13
2-Week 2.50 2.75 3.00 3.25 2.88
1-Month 3.00 3.25 3.50 3.75 3.38
2-Month 3.50 4.00 4.00 4.50 4.00
3-Month 3.50 4.00 4.00 4.50 4.00
4-Month 3.75 4.00 4.25 4.50 4.13
5-Month 4.00 4.25 4.50 4.75 4.38
6-Month 4.00 4.25 4.50 5.00 4.44
9-Month 4.25 4.50 5.00 5.75 4.88
1-Year 4.50 5.00 5.25 6.50 5.31
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RUPEE IN LAHORE: The rupee maintained rising tempo, and registered a significant gain of 80 paisa in relation to the greenback in the local currency markets on Tuesday.
According to the money-changers, the dollar resumed trading at Rs 61.30 and Rs 61.50 on buying and selling counters, respectively. However, as a result of selling pressure, the greenback could not maintain its opening level, and declined to Rs 61.00 and Rs 61.20 on buying and selling sides, respectively, against Rs 61.80 and Rs 62.00 of Monday, they added.
Likewise, the rupee also improved its worth against the pound sterling, whose buying rate decreased from the overnight closing rate of Rs 112.60 to Rs 111.20, while the selling rate moved down from Rs 113.00 to Rs 111.60, they said added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee was up by 80 pasia against the dollar in the open currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar opened at Rs 60.70 (buying) and Rs 60.80 (selling) against the last rate of Rs 61.50 (buying) and Rs 61.60 (selling). It did not observe any further change in the second session, and closed at Rs 60.70 (buying) and Rs 60.80 (selling).
Pound sterling opened at Rs 110 (buying) and Rs 110.20 (selling) against the overnight value of Rs 110.80 (buying) and Rs 110.90 (selling). It did not show any further change in the evening session, and closed at Rs 110 (buying) and Rs 110.20 (selling).
Canadian dollar opened at Rs 49.75 (buying) and Rs 49.85 (selling) against the same previous rate. It did not observe any further change in the evening session, and closed at Rs 49.75 (buying) and Rs 49.85 (selling).
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