The easy availability of dollar wiped out the gap between the official and open market rates in the post-holiday sessions last week.
In the interbank market, the rupee moved slightly versus the dollar for buying and selling at 59.75 and 59.77, respectively, while in the open market, it picked up 10 paisa against the dollar for buying and selling at 59.75 and 59.85, dealers said.
Versus the euro, the rupee also gained 55 paisa for buying and selling at Rs 69.65 and Rs 69.75, respectively, they addded.
The smooth supply position boosted the rupee in both the interbank and open markets, currency experts said. It's an encouraging sign that despite the higher demand for dollars, the rupee was maintaining its present level, but it is necessary that the State Bank of Pakistan (SBP) must keep close watch over the demand and supply position in the currency regime, they said.
This factor can ward off speculative buying of dollars and also help in discouraging the Hundi and Hawala businesses as well, the dealers said.
According to the market sources, the rupee was able to retain its firmness on balanced demand and supply factor. In fact, the easy supply of dollars as a result of funds or aid for the quake victims by the foreign countries and partly because of remittances by the overseas Pakistanis helped the rupee despite the higher demand for the dollars.
After holidays, there was a rush for dollars as genuine buyers indulged in hectic buying to meet the near-term demand, moneychangers said.
Importers demand for dollar surged to meet the higher payment requirements, strengthened the dollar's value versus the rupee, currency analysts said.
The rupee-dollar parity rates may go up in the coming days if importers continued forward buying in anticipation of short supply of the US currency, they said.
In the meantime, according to the news report, the foreign currency deposits were on decline after reaching 3,302 million dollars peak by the end of July, the first month of the current fiscal year. The demand for dollars might increase in the coming days and country's current account showed a deficit of 1.427 billion dollars in the first quarter of the fiscal 2005-06, compared with a surplus of 119 million dollars in the same period last year, the central bank said last week.
Provisional data posted by the State Bank of Pakistan (SBP) on its website said the trade deficit during the July-September period was 1.9 billion dollars, compared with a 782 million dollars deficit in the corresponding period a year earlier.
GLOBAL SCENARIO: In the international markets, the dollar was higher against the yen, dealers said.
In the middle of the week, the dollar was higher versus the euro and yen as the investors ignored the disappointing economic data, showing a record US trade gap in the month of September, dealers said.
At the weekend, the dollar slid against the world major currencies on profit-taking, dealers said.
INTERBANK RATES: On Monday, the rupee managed to limit its fall versus the dollar in the interbank despite the higher demand for the greenback at 59.73 and 59.74 for buying and selling, respectively.
On Tuesday, increasing demand for dollars pushed the rupee value down, losing two paisa for buying at 59.75 and slid three paisa on the selling side at 59.77, respectively. On Thursday, the rupee did not show any change on the buying and selling side, while on Friday, the rupee-dollar parity rates maintained almost remained firm for buying and selling at 59.76 and 59.77, dealers said.
On Saturday, the rupee showed little movement versus the dollar for buying and selling at 59.75 and 59.77, dealers said.
OPEN MARKET RATES: On November 7, the rupee maintained its recovery versus the euro, gaining 75 paisa for buying and selling at 70.20 and 70.30, respectively.
The rupee slipped versus the dollar on the increased demand for the greenback by the banks, losing 10 paisa for buying and selling at 59.75 and 59.85, moneychangers said.
On November 8, the rupee lost 10 paisa versus the dollar for buying and selling at 59.85 and 59.95 in process of extended demand for the greenback by the corporate sector, dealers said.
The rupee, however, recovered more 20 paisa versus the eruo for buying and selling at 70.00 and 70.10 as the single European currency failed to come out of recent weakness versus the greenback, they added.
In the early session, the euro touched the new low versus the rupee after crossing the mark of Rs 70 at Rs 69.70 and Rs 69.80 due to sharp fall in its demand in the overseas markets, they observed.
On November 9, all the commercial centres remained closed on account of Allama Iqbal's birthday, dealers said.
On November 10, the rupee shed five paisa against the dollar for buying and selling at 59.90 and 60.00, dealers said, adding it also shed 15 paisa versus the euro for buying at Rs 70.15 and slid 10 paisa for selling at 70.20 amid thin business.
On November 11, upward trend was seen as the rupee recovered 10 paisa on the buying side at 59.80 and gained 12 paisa on the selling side at 59.88, respectively.
The rupee also appreciated against the euro, gaining 35 paisa for buying and selling at 69.80 and 69.90 on falling of the single European currency versus the dollar, moneychangers said.
On November 12, the rupee extended its gains versus the dollar, picking up five paisa on the buying counter at 59.75 and three paisa on the selling side at 59.85, respectively.
Some dealers said that comparatively, dollars supply was better to meet the demand by the corporate sector. But it is expected that rising demand for the US currency might push the rupee to surrender its gains in the coming days, they said.
The local currency also managed to retain it winning streak in terms of the euro, gaining 15 paisa for buying and selling at 69.65 and 69.75, respectively, they added.
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