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30 paisa gain in kerb on New Year eve

SEEMA SHAFI

KARACHI: At the turn of the new millennium, the rupee scored 30 paisa gain against the dollar in kerb at Rs 53.85 and Rs 53.90 amid thin activity.

Explaining the steadier trend in the market, experts said that increasing supply of the dollar helped the rupee to touch peak last week against the US currency after breaking the barrier of Rs 54, however, it remained unchanged in inter-bank transactions at Rs 51.90 for both buying and selling.

Welcoming the year 2000, currency experts said that it seemed that there were no apprehensions about the Y2K bug as the the world tightened its belt to tackle this problem.

They also stated that all the international financial and local stock markets remained closed to face any computer related problem.

Commenting on the appreciation of the rupee, experts observed that sufficient supply of the dollar created liquidity crunch in the rupee as Overseas Pakistanis through the open market to exchange dollars for the local currency, they added.

Moreover, leading currency dealer Ovais Kalia of KKI, remarked that there was no doubt that the rupee went up from its previous levels during the Ramazan sessions but it would come to its realistic level after erasing earlier gains versus the greenback. He said that the rupee might hover between Rs 54.30 and Rs 54.40 after Eid holidays.

KERB MARKET: On Monday, the rupee gained two paisa versus the dollar at Rs 54.15 and Rs 54.20. Some money changers observed that the rupee showed its strength following the selling pressure of the greenback.

On Tuesday, upward trend was again witnessed as the rupee extended its overnight gains picking up 10 paisa against the dollar at Rs 54.05 and Rs 54.10. Dealers mentioned that there was no improvement in the daily transactions owing to falling dollar.

On Wednesday, the rupee maintained its rising trend against the dollar, showing 15 paisa more gain at Rs 53.90 and Rs 53.95.

Appreciating the prevailing trend in the rupee, analysts said that the declining dollar failed to attract many buyers but shrugged off any sharp rise in its value in the near future. Some said that the rupee's appreciation was occasional because of Eid-ul-Fitr celebrations.

On Thursday, the rupee maintained its winning streak and picked up two paisa more at Rs 54.88 and Rs 54.93. On Friday, the rupee ended the last day of the 1999 on a firm note, gaining three paisa more at Rs 54.85 and Rs 54.90. At the weekend, the rupee maintained its overnight levels versus the dollar .

INTER-BANK RATES: On December 27, the rupee managed to pick up two paisa for buying at Rs 51.88 and maintained its last level at Rs 51.90 for selling. On December, 28 the rupee dropped one paisa for buying at Rs 51.89, however, it remained unchanged at Rs 51.90. Dealers said that the rupee would depict its firmness in the near future.

On December 29, the rupee shed one paisa against the dollar for buying at Rs 51.90 while it did not show any change for selling. On December 30, the rupee maintained its overnight levels. Rates were not received as all the banks remained closed for bank holiday on Friday and Saturday.