20000401ISLAMABAD

The rupee showed an improvement of two paisa against the dollar in the money markets of twin cities here on Friday.

The market resumed trading with a comparatively weaker greenback at Rs 54.18 as compared to previous rate of Rs 54.20. The rupee did not observe significant change throughout the day and dollar was sold at Rs 54.24 as compared to last rate of Rs 54.25.

Currency dealers said that both the markets started the day on a negative note as all sort of players were out of the arena in the morning session. It continued to show minus signs throughout the day and finally closed on a weak note.

They said that genuine buyers were more than sellers on the second last trading day with thin volume. However, traditional dull activity on Friday and absence of profit seekers as well as manipulators further contracted the overall turnover.

A leading money changer of Islamabad said that the decision of the State Bank to lift restrictions on foreign exchange remittances would restore the confidence of the foreign investor.

This step would attract more foreign investment and at the same time strengthened the local currency. With the increase of dollar investment in various projects and stock exchanges of Pakistan, the major speculators and players would face difficulty to create any artificial shortage of greenback in the kerb, he added.

A money changer of Rawalpindi market said that new investment in Pakistan and flow of dollars will certainly help the rupee to remain higher against the dollar and other currencies.

Pound sterling opened at Rs 86.60 as compared to same overnight value. It moved between Rs 86.60 and Rs 86.70 and was sold at Rs 86.90.

UAE dirham opened at Rs 14.81 (buying) as compared to Thursday's rate of Rs 14.80. The trade volume of UAE currency remained moderate in both morning-evening session and was sold at Rs 14.83, Saudi currency was bought and sold at Rs 14.47 and Rs 14.50 respectively.

Japanese yen opened at Re 0.514 and was sold at Re 0.516 throughout the day.

German mark resumed trading at Rs 26.60 as compared to overnight value of Rs 26.50. It portrayed a dull picture throughout the day and finally sold at Rs 26.90.