Dollar's continued weakness mirrored in the interbank market on Wednesday as the rupee recovered 16 paisa for buying at 59.90 and it gained seven paisa on the selling counter at 60.00 on easy supply, dealers said.
Falling trend in the dollar's value in the overseas markets, helped the rupee to reverse the trend versus the greenback, market analysts said.
But it looks very difficult for the rupee to hold it's firmness as the market might increase dollar buying to meet the payments at the end of fiscal year.
Highlighting the rupee's strength in the local market, experts said the rupee's appreciation may prove short-lived as the importers buying to meet the bills will lift the dollar from the present level.
In the world markets, profit-taking was seen in the euro business as the dealers observed that the investors converted the single European currency into dollars and sold the greenback in the other markets, which made the availability of the dollars easy, dealers said.
Locally, in the open market, the dollar was available at Rs 60.50 on Wednesday due to psychical shortage of dollar as different banks purchased dollar to make the payments, they said.
Market players were guessing that the rupee may trade between the band of 59.95 and 60.15 in the short-term.
OPEN MARKET RATES: As a result of higher demand of dollars, the rupee failed to trim it's losses and quoted with slight weakness at 60.42 and 60.46 for buying and selling, respectively.
The rupee lost 50 paisa versus the euro at Rs 77.45 and Rs 77.55 following the dollar's fall in the international markets, they said.
Cheaper dollar is benefiting the US economy and definitely it will help in minimising worries over the huge US current account deficit, currency experts said.
They said that the dollar is easier as the US current account deficit is in focus as well as the issue of interest rate differential.
Last year, the dollar rose sharply versus the leading currencies as a series of interest rate rises by the US federal Reserve attracted capital inflows.
Pound sterling is still on the upward run and quoted at Rs 113.65 and Rs 113.75 in the morning session, dealers said. But at close it improved and rose by 25 paisa for buying at Rs 113.90 and Rs 114.00, they added.
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Buying Rs 60.42
Selling Rs 60.46
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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Wednesday.
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Buying Rs 59.90
Selling Rs 60.00
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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 6.00 8.95 6.50 8.95 7.60
1-Week 7.75 8.75 8.50 8.90 8.48
2-Weeks 8.50 8.85 8.75 8.90 8.75
1-Month 8.60 8.70 8.70 8.80 8.70
2-Months 8.65 8.75 8.75 8.80 8.74
3-Months 8.70 8.80 8.75 8.85 8.78
4-Months 8.65 8.75 8.75 8.80 8.74
5-Months 8.65 8.75 8.75 8.80 8.74
6-Months 8.65 8.75 8.80 8.85 8.76
9-Months 8.70 8.80 8.80 8.90 8.80
1-Year 8.75 8.80 8.85 8.90 8.83
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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 6.50 9.00 7.00 9.15 7.91
1-Week 8.00 8.90 8.50 9.10 8.63
2-Weeks 8.60 9.00 8.90 9.20 8.93
1-Month 8.90 9.20 9.25 9.50 9.21
2-Months 9.00 9.50 9.25 9.60 9.34
3-Months 9.25 9.60 9.50 9.75 9.53
4-Months 9.30 9.50 9.50 9.75 9.51
5-Months 9.35 9.60 9.50 9.80 9.56
6-Months 9.35 9.60 9.55 9.80 9.58
9-Months 9.50 10.00 9.80 10.25 9.89
1-Year 9.60 10.00 9.80 10.25 9.91
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RUPEE IN LAHORE: The dollar-rupee parity remained unchanged amid sluggish trading trend in the local currency markets here on Wednesday.
According to the currency dealers, there was no change in the demand for dollar and its supply condition, which helped the rupee maintain its value.
The dollar resumed trading at overnight closing rates of Rs 60.40 and Rs 60.50 on buying and selling sides, respectively. The dollar fractionally moved during the Wednesday's trading but finally closed at the opening levels, the dealers said.
However, the rupee remained under pressure and further lost its worth against the pound sterling. The British pound was purchased at Rs 113.90 and sold at Rs 114.30 as compared to Rs 113.00 and Rs 113.50 of Tuesday, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the local kerb markets of Islamabad and Rawalpindi on Wednesday.
The dollar resumed trading at Rs 60.15 (buying) and Rs 60.25 (selling) against the same last rate. It did not witness any further change and closed at Rs 60.15 (buying) and Rs 60.25 (selling) by the end of the evening session.
Pound sterling opened at Rs 111.20 (buying) and Rs 111.40 (selling) against the same previous rate. It did not observe any further change in the last trading hours and closed at Rs 111.20 (buying) and Rs 111.40 (selling).
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