THE RUPEE: dollar moves both ways

Friday, June 19, 2009

KARACHI: The rupee adopted divergent trend against dollar on the currency market on Thursday, dealers said. On the interbank market the rupee gave up gains in relation to dollar, losing eight paisa for buying and selling at 81.13 and 81.18, they said.

Huge payment requirement pushed dollar up against the rupee and this trend may maintain in the near future, they said. During the fourth Asian session dollar was steady against euro, hovering near lows struck the previous day after tame US inflation data further dampened speculation the Federal Reserve would raise interest rates by year end.

Earlier this month the market had fully priced in an increase in US interest rates by the end of the year after improving economic data, pushing the dollar up broadly and to a one-month high versus euro earlier this week.

Open Market Rates: The rupee appreciated in terms of the US currency gaining 20 paisa for buying at 81.00 and 10 paisa for selling at 81.20, they said. The rupee, however, drifted lower against euro, losing 50 paisa for buying at Rs 112.50 and Rs 113.50, they said.

Open Buying Rs 81.00
Open Selling Rs 81.20

Interbank Closing Rates: Interbank Closing Rates For Dollar On Thursday.

Buying Rs 81.13
Selling Rs 81.18

(BRecorder)