Taking a knock from the recent disappointing US data, the US dollar fell against major currencies, of late, as market expects a possibility for a third round of quantitative easing by the Federal Reserve.
This helped rupee to trim losses against the dollar, with bid and ask rates for the Pakistani rupee appreciating by 14 paisa and 13 paisa, respectively, against US dollar to Rs 94.40 and Rs 94.44, respectively, in the interbank market, on Tuesday. In the backdrop, the domestic currency had suffered losses on Monday, after Pakistan Government Bond Rating was downgraded by Moody's last Friday.
The rupee also was higher against US dollar in the open market, as dealers bought dollar at Rs 94.75 and sold at Rs94.95, as opposed to Monday's close at around Rs 94.90 and Rs 95.10.
The market expects rupee to stay range bound in the short- term, owing to higher remittances expected during Ramazan. In the long-run though, rupee is likely to remain under pressure, in light of significant borrowing from inflationary sources and lower discount rate.
The rupee depreciated slightly against Euro, with the bid rate closing at Rs115.80, marking a difference of 10 paisa from the previous trading season.
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Low rate 94.75
High rate 94.95
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Open Market Rates: Inter-Bank Market for Dollar on Tuesday.
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Bid 94.40
Offer 94.44
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RUPEE IN LAHORE: The Pak rupee improved its worth by 20-paisa on buying side while it remained unchanged on selling side against the US dollar on the local currency market on Tuesday.
The rupee gained 20 paisa against the dollar for buying at Rs 94.80 while it was inert for selling at Rs 95.30, they said.
Similarly, the rupee was improved on buying side while it was declined on selling side against the pound sterling. The pound was traded at Rs 147.00 and Rs 148.00 on buying and selling counters, compared with day earlier closing of Rs 147.30 and Rs 147.80, respectively, the dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against dollar on the open currency markets of Islamabad and Rawalpindi here on Tuesday.
The dollar opened at Rs 94.2 (buying) and Rs 94.3 (selling) against same last rate. It did not observe further change in the evening session and closed at Rs 94.2 (buying) and Rs 94.3 (selling).
Pound Sterling opened at Rs 146 (buying) and Rs 146.5 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 146 (buying) and Rs 146.5 (selling).
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