According to market sources, the rupee-dollar parity rates came under pressure as banks' demand for dollars increased. In the current month, the government has to pay nearly one billion dollars of loan causing a modest fall in rupee value, they said.
Secondly, the dollar demand was high as it was the first day after long holidays in the international markets due to Christmas and the New Year holidays.
The euro gained 35 paisa versus the rupee for buying and selling at Rs 72.36 and Rs 72.65, respectively.
Euro's appreciation in the world markets was mirrored in the kerb market as it seemed that the single European currency was again on the way to break new barrier of Rs 73, currency experts said.
Impact of emerging positive developments on the political front would definitely appeared on the economic side, they added.
Analysts were hoping that relations of India and Pakistan would improve after direct talks between President Musharraf and Indian Prime Minister Vajpayee.
Explaining the European single currency's direction versus the major currencies, some leading dealers said that the euro climbed to touch the new high versus the dollar in the world markets amid persistent worries about the widening US current account deficit and budget deficit.
Reuters added that forex dealers in the overseas markets were of the opinion that comments by the Federal Reserve Governor Ben Bernanke were also adding pressure on the dollar.
Remarks at a meeting of the American Economic Association in San Diego on Sunday that while the US economy appears to have turned a corner the central bank is right to hold interest rates at 45-year low given the low rate of underlying inflation. The euro stood at $1.2668/70, above the previous high of 1.2649.
INTERBANK RATES: The rupee-dollar parity rate did not fluctuate sharply for buying and selling at Rs 57.42 and Rs 57.44. The greenback may gain slightly in the coming days, market men said.
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Kerb Buying Rs 57.45
Kerb Selling Rs 57.55
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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Monday.
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Buying Rs 57.42
Selling Rs.57.44
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Repo Rates (Yield p a)
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Tenor Low Bid High Bid Low Offer High Offer Average
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Overnight 0.10 0.50 0.30 1.00 0.48
1-Week 0.40 0.70 0.90 1.20 0.80
2-Week 0.80 1.00 1.20 1.40 1.10
1-Month 1.10 1.30 1.50 1.70 1.40
2-Month 1.40 1.60 1.80 2.00 1.70
3-Month 1.40 1.60 1.80 2.00 1.70
4-Month 1.60 1.80 2.00 2.20 1.90
5-Month 1.60 1.80 2.00 2.20 1.90
6-Month 1.60 1.80 2.00 2.20 1.90
9-Month 2.10 2.30 2.50 2.70 2.40
1-Year 2.20 2.40 2.60 2.80 2.50
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Call Rates (Yield p a)
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Tenor Low Bid High Bid Low Offer High Offer Average
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Overnight 0.20 0.60 0.40 1.10 0.58
1-Week 0.50 0.80 1.00 1.30 0.90
2-Week 1.00 1.20 1.40 1.80 1.35
1-Month 1.20 1.40 1.60 1.80 1.50
2-Month 1.60 1.80 2.00 2.20 1.90
3-Month 1.60 1.80 2.00 2.20 1.90
4-Month 1.80 2.00 2.20 2.40 2.10
5-Month 1.80 2.00 2.20 2.40 2.10
6-Month 1.80 2.00 2.20 2.40 2.10
9-Month 2.20 2.40 2.60 2.80 2.50
1-Year 2.30 2.50 2.70 2.90 2.60
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RUPEE IN LAHORE: The rupee marginally lost its value by three-paisa in relation to the greenback in the local currency markets on Monday.
The dollar resumed trading at Saturday's closing rates of Rs 57.32 and Rs 57.40 on buying and selling counters, respectively. A marginal increase was witnessed in dollar's demand, which pushed its rate slightly up.
The dollar finally closed at Rs 57.35 and Rs 57.43 on buying and selling counters, respectively, the dealers added.
Likewise, the local currency remained weak versus the British pound whose buying rate improved from Saturday's Rs 102.50 to Rs 102.70 while selling rate increased from Rs 102.80 to Rs 103.00 the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar was plus by 15 paisa against the rupee at the open currency markets of Islamabad and Rawalpindi here on Monday.
The dollar opened at the buying and selling rates of Rs 57.40 and Rs 57.50 against last rate of Rs 57.25 and Rs 57.35 respectively.
It did not observe any further change in the second spell and buying and selling rates closed at Rs 57.40 and Rs 57.50 respectively.
Pound sterling opened at the buying and selling rates of Rs 103 and Rs 103.20 against overnight value of Rs 102 and Rs 102.20 respectively.
It did not observe any further fluctuation in the evening spell and buying and selling rates closed at Rs 103 and Rs 103.20 respectively.