The rupee also managed to recover eight paisa in the inter-bank market in terms of dollar for buying and selling at Rs 59.81 and Rs 59.83, respectively. The euro could not maintain its firmness versus the rupee, losing Rs 1.25 for buying and selling at Rs 70.65 and Rs 70.75.
The feature of the week was the narrowing of difference between the open market and inter-bank rates on smooth demand and supply factor of the dollar, they said.
Some dealers at the Forex Association of Pakistan (FAP) said that increased supply of dollars strengthened the rupee value. Higher demand for dollars kept the rupee under pressure due to year-end payments. The rupee, however, started showing firmness after completion of most of the payments to the overseas companies, money experts said.
They said that significant rise in dollars supply on the occasion of Eid-ul-Azha and selling of export proceeds helped the rupee lift from the bottom side.
A few economists said that the dollar might fluctuate slightly as some small payments are still in process. The increase was an occasional rise in the value of the rupee and the real trend of the market will be emerge after the Eid-ul-azha holidays and beginning of the new calendar year 2006, they said.
They said that dollar buying by the Hujjaj and slight improvement in the remittances kept a balance between demand and supply position.
WORLD VALUE OF DOLLAR VS OTHER CURRENCIES: The dollar moved both ways in the world markets following a combination of factors, dealers at the local market observed.
The dollar slipped against euro and yen in Asian trade in the final sessions of the week, after the US inflation data proved tamer than expected, lessening the chance of rate rises beyond January.
According to market sources, the dollar would move slightly but its rally would prove short-lived as the expectations of further increase in the value of the interest rate were fading.
The Federal Reserve signalled that it may stop raising the rates after significant improvement in the basic fundamentals.
The US currency expanded at 4.1 percent annual pace in the third quarter, the US government said in its final estimate for the July-Sept, 2005.
OPEN MARKET RATES: On Monday, sliding trend was seen as the rupee shed five paisa in relation to the dollar for buying and selling at Rs 60.15 and Rs 60.25, respectively.
The rupee lost 10 paisa against euro for buying and selling at Rs 71.90 and Rs 72.00 due to commanding position of the single European currency in the world markets.
On Tuesday, the rupee did not show any change against dollar for buying at Rs 60.15 while it managed to gain five paisa for selling at Rs 60.20.
The rupee gained 30 paisa against euro for buying and selling at Rs 71.60 and Rs 71.70 as the single European currency slipped versus dollar on expectations of strong US economy.
On Wednesday, the rupee posted fresh gain of five paisa versus dollar for buying and selling at Rs 60.10 and Rs 60.15, respectively.
The rupee also recovered 70 paisa versus euro for buying and selling at Rs 70.90 and Rs 71.00 in process of trading, they said.
On Thursday, the rupee maintained its overnight level versus euro for buying and selling at Rs 70.50 and Rs 70.60.
On Friday, sharp recovery was seen in the value of the rupee versus dollar, picking up 25 paisa for buying at Rs 59.80 and gaining 20 paisa for selling at Rs 59.90 on easy supply of the US currency.
The rupee, however, gave up its overnight firmness versus euro, recovering five paisa on the buying side at Rs 70.55 and Rs 70.65, respectively.
The factor, which brought the single European currency out from the recent slide was the rise in its value in the global markets.
On Friday, all trading centres remained closed due to Emperor Day holiday and in the US, commercial institutions will remain closed in observance of Christmas holidays.
On Saturday, the rupee failed to hold its firmness, dropping 10 paisa against dollar for buying and selling at Rs 59.90 and Rs 60.00 on rising demand by importers following the long week-end consideration in the overseas markets.
The rupee lost 10 paisa versus euro for buying and selling at Rs 70.65 and Rs 70.75.
INTER-BANK RATES: On December 19, the rupee managed to retain it week-end level versus dollar for buying and selling at Rs 59.89 and Rs 59.91.
On December 20, strong supply of dollars boosted the rupee value, gaining five paisa for buying and selling at Rs 59.84 and Rs 59.86, respectively.
On December 21, sharp gain was seen in the value of rupee against dollar on rising supply of dollars, picking up six paisa for buying at Rs 59.78 and gained four paisa on the selling side at Rs 59.80, dealers said.
On December 22, the rupee gave up firmness versus dollar, shedding four paisa for buying at Rs 59.82 and slid three paisa for selling at Rs 59.83 on rising demand for the US currency.
On December 23, the rupee was stuck in a tight range amid strong demand and supply position but somehow held its present level against the greenback at Rs 59.82 and Rs 59.84, dealers said.
On December 24, the rupee shed one paisa versus dollar for buying and selling at Rs 59.81 and Rs 59.83, dealers said.