Thanks to the liquidity crunch in the interbank market, the rupee was enabled to expand its winning streak versus the dollar on Wednesday, gaining eight paisa more for buying and selling at 59.18 and 59.20, respectively. The dollars easy supply helped the rupee to gain strength in the interbank market, dealers said and added that sales by exporters was one of the major factors. In anticipation of more gains in the local currency value, the exporters hurried to dispose off their dollar holdings, they added.
On the other hand, increase in dollar inflows from overseas Pakistanis would also help the rupee to continue its rise versus the dollar.
Tight money market liquidity was also forcing banks to offload dollar holdings to generate rupee liquidity, money experts said.
They analysed that rupee is likely to touch the new high at 59 per dollar in the interbank market on easy supply of dollars.
In the world markets, the US currency showed mixed trend in relation to the leading currency on nagging concerns about the US economy and renewed hopes of higher Chinese yuan, dealers said.
The rupee also gained 45 paisa in relation to the euro for buying and selling at Rs 77.15 and Rs 77.45, dealers said.
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Kerb Buying Rs 59.50
Kerb Selling Rs 59.65
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Buying Rs 59.18
Selling Rs 59.20
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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 7.40 7.45 7.40 7.45 7.43
1-Week 6.75 7.00 7.25 7.40 7.10
2-Week 6.75 7.00 7.25 7.40 7.10
1-Month 5.50 5.75 5.85 6.00 5.78
2-Months 5.25 5.50 5.75 5.90 5.60
3-Months 5.25 5.50 5.75 6.00 5.63
4-Months 5.15 5.55 5.65 5.58 5.55
5-Months 5.00 5.40 5.60 5.90 5.48
6-Months 5.00 5.50 5.75 6.00 5.56
9-Months 5.00 5.25 5.70 5.90 5.46
1-Year 5.50 5.75 6.00 6.25 5.88
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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 7.40 7.50 7.40 7.50 7.45
1-Week 7.25 7.50 7.50 8.00 7.56
2-Week 7.25 7.50 7.50 7.75 7.50
1-Month 6.00 6.50 6.75 7.00 6.56
2-Month 5.75 6.00 6.50 6.75 6.25
3-Month 6.00 6.25 6.50 6.75 6.38
4-Month 5.50 5.75 5.90 6.25 5.85
5-Month 5.75 6.00 6.25 6.50 6.13
6-Month 6.00 6.50 6.75 7.00 6.56
9-Month 5.80 6.10 6.50 6.75 6.29
1-Year 6.25 6.50 6.75 7.00 6.63
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According to the currency dealers, the dollar resumed trading at Rs 59.55 and Rs 59.65 as its buying and selling rates, respectively.
As a result of selling pressure, the dollar could not sustain it, but started moving down. At the end of trading, the dollar was traded at Rs 59.50 and Rs 59.60 on buying and selling sides, respectively, against Rs 59.65 and Rs 59.75 of Tuesday, the dealers added.
Similarly, the rupee maintained upward trend against the pound sterling. The pound's buying rate declined from Tuesday's closing rate of Rs 111.75 to Rs 111.50, while its selling rate fell down from Rs 112.00 to Rs 111.80, they said.
The grennback opened at Rs 59.65 (buying) and Rs 59.75 (selling) against the last rate of Rs 59.60 (buying) and Rs 59.70 (selling). It did not observe any further change in the evening session, and closed at Rs 59.65 (buying) and Rs 59.75 (selling).
Pound sterling opened at Rs 111 (buying) and Rs 111.10 (selling) against the previous rate. It did not observe any change in the second spell, and closed at Rs 111 (buying) and Rs 111.10 (selling).