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Firm trend was seen in the interbank market on Tuesday as the rupee almost maintained its overnight levels against dollar for buying and selling at Rs 60.59 and RS 60.60, respectively. The rupee held its last levels as dollars' supply has eased and it is likely that the rupee might be able to stand firm in the near future, dealer said.
In the meantime, some currency analysts observed that it's a fact that the supply of dollar is strong as the State Bank of Pakistan (SBP) is not allowing the rupee to fall against the dollar. They said that it qas observed that depreciation of the rupee did not help in increasing the country's exports in the past. To give a boost to the country's exports the central bank devalue the rupee but in vein.
Because, instead of a rise the exports show declining trend and imports were going up, they said. The government was importing high technologies to improve exports but the exporters despite getting a lot of facilities and concessions from the government, are making hue and cry over the raise in the interest rates, power shut down and several other hurdles for not achieving the desired purpose. The rupee may come under pressure if the exports don't show any significant improvement, they guessed.
WORLD MARKET SCENARIO: In the Asian markets dollar was little changed against major currencies on Tuesday. In the European market dollar ticked lower ahead of three central bank meetings that could underscore market expectations for the US interest rates to fall this year as rates in other major economies rise.
Worries about growth in the United States slowing at a time when it is expected to remain relatively solid in other major economies were likely to keep dollar under pressure, analysts said.
OPEN MARKET RATES: The rupee maintained its overnight levels against dollar for buying at Rs 60.65 and selling at Rs 60.75 amid strong demand for dollar, they said. The rupee continued its slide against the euro, inching down by two paisa for buying and selling at Rs 82.28 and Rs 82.38, they said.



================================
Buying Rs 60.65
Selling Rs 60.75
================================

INTERBANK CLOSING RATES: Interbank closing rates for dollar on Tuesday.



==============================
Buying Rs 60.59
Selling Rs 60.60
==============================
=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 8.75 9.15 8.90 9.25 9.01
1-Week 8.75 8.90 8.85 9.00 8.88
2-Weeks 8.75 8.85 8.85 8.95 8.85
1-Month 8.80 8.90 8.90 9.00 8.90
2-Months 8.80 8.90 8.85 9.00 8.89
3-Months 8.80 8.90 8.85 9.00 8.89
4-Months 8.85 8.95 8.90 9.05 8.94
5-Months 8.80 9.00 8.90 9.05 8.94
6-Months 8.85 9.05 8.95 9.15 9.00
9-Months 8.85 9.10 9.00 9.15 9.03
1-Year 8.90 9.10 9.10 9.20 9.08
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 8.90 9.40 9.00 9.50 9.20
1-Week 9.00 9.40 9.25 9.50 9.29
2-Weeks 9.00 9.40 9.25 9.50 9.29
1-Month 9.10 9.25 9.25 9.50 9.28
2-Months 9.25 9.50 9.50 9.75 9.50
3-Months 9.40 9.60 9.60 9.80 9.60
4-Months 9.50 9.75 9.75 10.00 9.75
5-Months 9.75 10.00 10.00 10.25 10.00
6-Months 9.75 10.25 10.00 10.50 10.13
9-Months 10.00 10.50 10.50 11.00 10.50
1-Year 10.25 10.75 10.50 11.00 10.63
=================================================================

RUPEE IN LAHORE: The Pak rupee-dollar parity remained unchanged amid sluggish trading in the local currency markets on Tuesday.
According to currency dealers, there was no change in dollar's demand and supply conditions which helped rupee maintain its position. The dollar's trading commenced at overnight closing level of Rs 60.50 and Rs 60.60 as its buying and selling rates, respectively. The opening rates continued to prevail during the entire day's trading and finally closed at the same level, the dealers added.
However, the rupee maintained upward trend and improved its value against the pound sterling. The pound was purchased at Rs 120.30 and was sold at Rs 120.60 as compared to previous closing of Rs 120.50 and Rs 150.80, respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar opened at Rs 60.60 (buying) and Rs 60.70 (selling) against the last rate. It did not observe any change in the second session and closed at Rs 60.60 (buying) and Rs 60.70 (selling).
Pound Sterling opened at Rs 120.50 (buying) and Rs 120.70 (selling) against the last rate. It did not witness any change in the evening session and closed at Rs 120.50 (buying) and Rs 120.70 (selling).
Copyright Business Recorder, 2007

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