The rupee moved both ways against dollar in the currency market amid shortened week due to Kashmir Day holiday, money experts said. Range-bound trading was seen in the inter-bank market as the rupee showed mixed trend against dollar for buying and selling at Rs 59.33 and Rs 59.35.
The rupee lost 20 paisa against dollar in the open market at Rs 59.50 and Rs 59.60, respectively. The rupee shed 10 paisa versus euro for buying and selling at Rs 77.14 and Rs 77.45, dealers said.
Commenting on the mixed trend of the rupee versus dollar during the week, money experts said that the rupee was not able to hold on to most of the gains on increased demand by importers. But it resisted sharp fall on dollar selling by exporters and rising trend in remittances.
Besides, the local currency firmed up on stable trend in the country's foreign exchange reserves, the president of the Forex Association of Pakistan (FAP) Malik Bostan said.
The State Bank of Pakistan (SBP) said last week that receipts from sale of 600 million dollars Islamic bond had pushed the country's total foreign exchange reserves to all-time high of 12.73 billion dollars.
According to banking sources, the Sukuks (Islamic Bond) receipts were the key reason behind the increase in the reserves.
The FAP president said that the rupee might show marginal fall versus dollar in the coming days.
In the international markets, the dollar managed to show slight recovery against major currencies ahead of Group of Seven (G-7) meeting. In fact, this factor boosted its value locally as well, money experts said.
It seems that the rupee might show firmness versus dollar in the coming days, they added.
Commenting on the fresh rise in oil prices, analysts observed that this was the second month in a row when oil prices continued surge and might cause the inflation rate to move up slightly.
In the meantime, the State Bank said that it would continue raising rates over the next six months to check rising inflation, and indicated that the pace of rate rise would be faster.
However, it also said it would raise rates at a pace which would not hurt economic growth.
The consumer price index (CPI) rose 7.37 percent in the year through December.
OPEN MARKET RATES: On Monday, the rupee depicted no major difference against dollar for buying and selling at Rs 59.30 and Rs 59.40, respectively.
The euro slipped from the weekend levels, giving up five paisa versus rupee for buying and selling at Rs 77.25 and Rs 77.40, dealers said.
On Tuesday, the rupee almost maintained its levels in terms of dollar for buying at Rs 59.35 and for selling at Rs 59.40, market men said. The rupee, however, lost 30 paisa in relation to the euro for buying and selling at Rs 77.40 and Rs 77.70, dealers said.
On Wednesday, the rupee maintained its overnight level versus dollar for buying at 59.35 while it lost five paisa for selling at 59.45, dealers said.
The euro maintained its rise, picking up more 30 paisa for buying and selling at Rs 77.70 and Rs 78.00, respectively.
On Thursday, the rupee failed to hold its overnight firmness in relation to dollar, losing ten paisa for buying and selling at Rs 59.45 and Rs 59.55, dealers said.
The rupee, however, posted fresh gain of 35 paisa in terms of euro for buying and selling at Rs 77.35 and Rs 77.65 after its slide in overseas market versus dollar.
On Friday, the rupee shed five paisa against dollar for buying and selling at Rs 59.50 and Rs 59.60, respectively. The rupee shed 20 paisa against euro for buying and selling at Rs 77.15 and Rs 77.45, respectively.
INTERBANK RATES: On January 31, the rupee did not show any change for buying at Rs 59.32 while it lost four paisa for selling at Rs 59.38, market men said.
On February 1, the rupee-dollar parity rates stuck in a narrow band for buying and selling at Rs 59.34 and Rs 59.38, respectively.
On February 2, range-bound trading was seen as the rupee maintained its overnight levels for buying and selling at Rs 59.35 and Rs 59.40, money experts said.
On February 3, the rupee improved with marginal gain against dollar for buying and selling at Rs 59.33 and Rs 59.35, respectively. On February 4, the rupee did not show any change versus dollar.
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