As a result of recent move by the State Bank of Pakistan (SBP) to revise the forward cover rules, the rupee managed to recover sharply in both the interbank and open markets, dealers said.
The rupee gained handsome ground versus the greenback following the central bank move in which it has revised and streamlined the instructions on the forward covering facilities being provided by the authorised dealers (banks) against the imports and foreign private loans. To check the rising demand of dollar, the SBP has attached forward cover booking with letter of credit (L/C) against imports.
Reuters adds: In the fourth Asian session, euro languished near an 11-month low against dollar, struggling to make much headway after the European Central Bank's tender brought little respite to funding markets and nudged traders to snap up gains.
The ECB's first ever limit-free, ultra-cheap loans did little to lower the cost for banks to borrow dollars and it was unclear whether the 523 banks that tapped them will lend the cash on and boost the ailing European economy or just sit on it. The dollar was available against the Indian rupee at Rs 52.77, the dollar versus the Malaysian ringgit was at 3.1750 and in relation to the Chinese yuan it was at 6.3395.
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Open Buying Rs 89.80
Open Selling Rs 90.00
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Buying Rs 89.65
Selling Rs.89.70
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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 11.00 11.90 11.25 11.90 11.51
1-Week 11.50 11.75 11.70 11.80 11.69
2-Week 11.60 11.75 11.75 11.85 11.74
1-Month 11.65 11.80 11.75 11.90 11.78
2-Months 11.65 11.85 11.80 11.90 11.80
3-Months 11.70 11.80 11.80 11.85 11.79
4-Months 11.70 11.75 11.80 11.85 11.78
5-Months 11.70 11.80 11.80 11.85 11.79
6-Months 11.65 11.75 11.80 11.85 11.76
9-Months 11.70 11.85 11.85 11.90 11.83
1-Year 11.70 11.85 11.85 11.90 11.83
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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 11.00 11.90 11.25 11.90 11.51
1-Week 11.50 11.90 11.75 12.00 11.79
2-Week 11.65 11.85 11.85 11.95 11.83
1-Month 11.70 11.90 11.90 12.00 11.88
2-Months 11.70 11.90 11.85 12.00 11.86
3-Months 11.80 11.90 11.85 12.00 11.89
4-Months 11.80 11.90 11.90 12.00 11.90
5-Months 11.85 11.90 11.90 12.00 11.91
6-Months 11.85 11.95 11.95 12.00 11.94
9-Months 11.85 12.00 12.00 12.10 11.99
1-Year 11.90 12.00 12.10 12.15 12.04
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According to the currency dealers, the dollar resumed trading at its overnight closing of Rs 89.80 and Rs 90.20 on buying and selling side, respectively. However, because of lacking demand, the dollar was moved down to Rs 89.70 and Rs 90.10, respectively.
Likewise, the rupee recovered some of its day earlier loss and gained 10-paisa in relation to the pound sterling. The pound was purchased and sold at Rs 140.40 and Rs 141.40, as compared to Wednesday closing of Rs 140.50 and Rs 141.50, respectively, the dealers added.
The dollar opened at Rs 89.00 (buying) and Rs 89.20 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 89.00 (buying) and Rs 89.20 (selling).
Pound Sterling opened at Rs 138.00 (buying) and Rs 138.90 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 138.00 (buying) and Rs 138.90 (selling).