20000306

10 paisa recovery

in kerb market

SEEMA SHAFI

KARACHI: The rupee last week managed to portray firm position against the dollar in kerb, picking up 10 paisa at Rs 54.22 and Rs 54.25 for buying and selling despite the apprehensions following an abnormal increase in Indian defence budget.

The local currency, however, failed to show any specific fluctuation versus the greenback in inter-bank market at Rs 51.88 and Rs 51.89.

The kerb market adopted its own path and did not react to the report that India has increased its defence budget by over 28 percent for the year starting in April.

Currency experts were of the view that sustained signs of economic stability guaranteed a little shot in the arm leading to an appreciation in value of the rupee.

The other factor, according to market sources, which caused a modest rise in the value of the rupee was a technical correction as the local currency was under pressure during the fortnight.

Besides, overseas Pakistanis sending dollars to their families on the occasion of Eid-ul-Azha eased the dollar supply which also caused a modest recovery in the rupee versus the greenback.

In addition, an encouraging news on the economic front that textile exports have shown a 10.51 percent rise during the seven months was another boost for the local currency, experts said.

Exports surged by 10.51 percent in seven months and experts were hopeful that during the current fiscal the textile sector would recover losses it suffered in the past few years due to low production of raw cotton.

Ovais Kalia said that Indian budget news could have a negative impact on the currency market, but comfortable supply of the greenback did not allow any weakness versus the dollar.

KERB MARKET: On Monday and Tuesday,the rupee firmly held its previous week's levels against the greenback at Rs 54.33 and Rs 54.36. On Wednesday, the rupee recovered 10 paisa in relation to the US currency at Rs 54.23 and Rs 54.26 amid increasing supply of the dollar. Most of the investors and profit-seekers remained out of the market due to less margin of profits in currency business, money changers said.

On Thursday, the rupee maintained its rising trend and picked up further two paisa versus the dollar at Rs 54.21 and Rs 54.24 on easing supply of the greenback. On Friday, the rupee shed one paisa against the dollar at Rs 54.22 and Rs 54.25 in modest business. At the weekend, the rupee maintained its overnight levels versus the dollar.

INTER-BANK RATES: On Monday, the rupee did not show any change against the dollar at Rs 51.89 and Rs 51.90. On Tuesday, the rupee shed one paisa for buying at Rs 51.90 while it maintained its overnight level for selling at the same level.

On Wednesday, the rupee gave up its overnight weakness and recovered one paisa on the buying side at Rs 51.89 while no any change was observed in its selling rate at Rs 51.90.

On Thursday, the rupee maintained its upward trend showing an increase of one paisa more for its buying and selling at Rs 51.88 and Rs 51.89 in normal trade activity. On Friday and Saturday, the rupee maintained its overnight levels versus the dollar at Rs 51.88 and Rs 51.89 for buying and selling.