BR RESEARCH
KARACHI: The dollar maintained an upward trend on the money market on Monday following the International Monetary Fund (IMF) and government bail out deal, dealers said.
They said it is difficult to say about the direction of the market in the coming days after the said accord, but it looks that the local currency would face erosion in its value versus the dollar.
Marketmen said if the government increases interest and energy rates, it may be disastrous for the business circle because it would increase the cost of production, which will discourage doing business in the country. In the meantime, dollar's surge will definitely give a boost to the export of textile products, they said.
The economy is still out of track, because main fundamentals are not performing well due to lack of local and foreign investors' confidence.
INTER-BANK MARKET RATES: The rupee showed slight changes in relation to the dollar for buying and selling at Rs 141.38 and Rs 141.40 respectively, they said.
In the first Asian trade, the safe-haven yen firmed slightly and the Chinese yuan and Australian dollar dipped on Monday, after the latest escalation in the trade war between the United States and China.
The world's two biggest economies appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.
"Dollar/yen's range has definitely shifted lower. But it is difficult to see the dollar fall back towards its lows probed against the yen at the start of the year, given how relatively firm recent US economic data has been," said Koji Fukaya, director at FPG Securities in Tokyo, referring to the greenback's brief "flash crash" below 105 yen early in January.
The dollar was trading against the Indian rupee at Rs 70.210, the greenback was at 4.163 in terms of the Malaysian ringgit and the US currency was available at 6.8580 versus the Chinese yuan.
OPEN MARKET RATES: The rupee lost one rupee in terms of the dollar for buying and selling at Rs 143.00 and Rs 143.50 respectively, they said. The rupee dropped by 80 paisas against the euro for buying and selling at Rs 159.60 and Rs 161.40 respectively, they said.
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Open Bid Rs.143.00
Open Offer Rs.143.50
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday.
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Bid Rate Rs.141.38
Offer Rate Rs.141.40
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RUPEE IN LAHORE: The Pak rupee recovered on buying side while it stayed unchanged on selling side in relation to the American dollar in the local currency market on Monday.
According to currency dealers, the dollar shed 20 paisas and ended lower for buying at Rs 143.00 against the previous closing rate of Rs 143.20 whereas it firmly sustained its opening trend for selling at Rs 143.50.
Furthermore, the local currency depreciated its worth in process of trading against the pound sterling. The pound's buying and selling rates improved from the Saturday's closing of Rs 184.60 and Rs 186.00 to Rs 185.10 and Rs 186.50 respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar gained Re. 1 against the local currency at the local currency markets of Islamabad and Rawaplindi on Monday.
The dollar opened at Rs 143(buying) and Rs 143.10(selling) against last rate of
Rs 142 (buying) and Rs 142.10 (selling). It closed at Rs 143(buying) and Rs 143.10(selling).
The buying and selling rates of one tola of gold was Rs 68,000 (selling) and Rs 67,800(buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.
