Ru­pee rises on slow dol­lar de­mand

The Pak Banker - - FRONT PAGE -

LA­HORE: The ru­pee traded firm against the dol­lar in the lo­cal cur­rency mar­ket, mov­ing in nar­row band last week. Though de­mand for dol­lar ex­isted, sus­tained sell­ing of dol­lars by banks and ex­porters in view of good for­eign cap­i­tal in­flows was suf­fi­cient to cover de­mand. Due to a rel­a­tively lesser than usual de­mand from the cor­po­rate sec­tor, no size­able pay­ments from na­tional ex­che­quer took place dur­ing the week. At the same time, banks had enough liq­uid­ity to meet im­port pay­ments re­quire­ment. Against euro, how­ever, the ru­pee es­ca­lated both ways in nar­row ranges. On the in­ter­bank mar­ket, the ru­pee last week dis­played strength against the dol­lar amid low de­mand. The ru­pee fur­ther ex­tended its week­end firm­ness against the dol­lar in the first trad­ing ses­sion when it traded at Rs104.73 and Rs104.75 over the last clos­ing at Rs104.76 and Rs104.77. In the se­cond ses­sion it inched down by one paisa on the buy­ing counter but re­tained its overnight rate un­changed on the sell­ing counter.

The lo­cal cur­rency staged a mod­est re­cov­ery at Rs104.73 and Rs104.74. Con­tin­u­ing its up­ward march, the ru­pee traded at Rs104.71 and Rs104.72 in the fourth ses­sion. It ended the week on plus note, hit­ting fresh highs at Rs104.66 and Rs104.68.

Dur­ing the week, the dol­lar in the in­ter­bank mar­ket de­pre­ci­ated against the ru­pee by 10 paisas on the buy­ing counter and 11paisas on the sell­ing counter.

In the open mar­ket, the ru­pee opened week by post­ing 10 paisas gain against dol­lar at Rs105.80 and Rs106.00 against the prior week­end level of Rs105.90 and Rs106.10. The dol­lar weak­ened by an­other 20 paisa to close at Rs105.60 and Rs105.80, hit­ting fresh lows against the ru­pee on sus­tained sell­ing of dol­lars by banks and ex­porters in the se­cond trad­ing ses­sion. Af­ter gain­ing 30 paisas in the first two trad­ing ses­sions, the ru­pee traded flat at Rs105.60 and Rs105.80 in the fol­low­ing three straight ses­sions amid lower than usual dol­lar de­mand and easy dol­lar sup­plies. Dur­ing the week, the ru­pee in the open mar­ket ap­pre­ci­ated against the dol­lar by 30 paisas on a weekon-week ba­sis. Against euro, the ru­pee es­ca­lated be­tween plus and mi­nus, mov­ing in nar­row band. The week com­menced in plus as the ru­pee ex­tended week­end firm­ness and posted 30 paisas gain in the first trad­ing ses­sion.

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