Significant supply of dollars strengthened the rupee versus the greenback in the currency market amid shortened week due to Eidul Fitr holidays, dealers said.
In the inter-bank market, the rupee managed to hold its present levels in terms of the dollar for buying and selling at 59.70 and 59.73, respectively. In the open market, it gained 15 paisa versus the dollar for buying at 59.65, and picked up 10 paisa for selling at 59.75, dealers said.
Versus the euro, the rupee gained 25 paisa on the buying counters at 71.35 and 71.45 as a result of persistent fall in the single European currency unit, they said.
Inflows of dollars strengthened the rupee in both the inter-bank and the open markets, said Malik Bostan, president, Forex Association of Pakistan (FAP).
Some dealers said that the rupee might come under pressure in the coming days due to high demand for dollars by the corporate sector. Recently, higher oil prices in the world markets pushing the demand for the dollar in the local market to make the import bills payment, they said.
GLOBAL SCENARIO: In the international markets, the dollar traded in a narrow band versus the major currencies ahead of the Federal Reserve meeting, which may increase the interest rates further, dealers said.
On Tuesday, in the overseas markets, the dollar firmly held its steadier trend on expectations of rise in the US interest rates, they added.
In the middle of the week, the dollar scored a two-year high against the yen after the Federal Reserve raised interest rates for the 12th straight time and signalled it would push rates even higher to fend off inflation risks.
The boost in US rates bolstered the market's view that Japanese rates would continue to lag behind those of its currency rivals, driving the yen to its lowest level against the euro in more than seven months.
The Fed raised its key rate to 4 percent on Tuesday, and expectations have grown in the market that the European central bank, which holds a policy meeting on Thursday, could raise rates from 2 percent by the end of the year.
INTER-BANK MARKET: On Monday, steadier trend was seen as the rupee held its weekend levels versus the dollar for buying and selling at 59.70 and 59.71, respectively.
Balanced demand and supply position did not allow the rupee to move any side, dealers said. They, however, said that the rupee is likely to drift lower in the coming days due to rising demand for dollars to make higher payments, some moneychangers at the Forex Association of Pakistan (FAP) said.
On Tuesday, the rupee shed one paisa against the dollar for buying and selling at 59.71 and 59.72 in process of trading, marketmen said.
On Wednesday, the rupee did not show any major change versus the dollar for buying and selling at 59.70 and 59.73, they added.
OPEN MARKET RATES: On October 31, the rupee was lower by five paisa against the dollar for buying at 59.80 while it did not show any change for selling at 59.85, dealers said.
The rupee shed 10 paisa versus the euro for buying and selling at 71.60 and 71.70, respectively.
On November 1, the rupee gained 60 paisa gain versus the euro for buying and selling at 71.00 and 71.10, respectively.
The rupee managed to gain versus the single European currency on the back of euro's continued fall versus the dollar in the international markets, they said.
The rupee gained five paisa versus the dollar for buying at 59.75 while it maintained its last level for selling at 59.85, they said.
On November 2, the rupee picked up 10 paisa versus the dollar for buying and selling at 59.65 and 59.75, respectively.
Fresh inflows of dollars strengthened the rupee versus the greenback, dealers said, adding that how the rupee would maintain its firmness in the coming days, it will depend on the demand and supply factor of the US currency.
Versus the euro, the rupee lost 35 paisa for buying and selling at 71.35 and 71.45, respectively, dealers said.
Comments
Comments are closed.