Rupee at 10-day high vs dollar

KARACHI  - Rupee on Thursday soared to 10-day high against the US dollar following increases in interest rates on several national saving schemes (NSS), dealers said. Finance Minister Naveed Qamar in a budget speech for fiscal 2008-2009 on Wednesday announced a hike of 2 per cent on returns, a move analysts saw as presaging a decision by State Bank of Pakistan to increase its benchmark interest rates soon. The rupee advanced to 66.50/66.90 against the dollar as compared to 67.30/67.60 on Wednesday. 'We think the increase in the NSS rates triggers chances that the central bank will also follow suit,' said dealer Ali Kazim at Invest Cap Securities. The State Bank last month had already increased its key interest rates by 150 basis points, which surprised the markets and brought a 3-per-cent gain for the rupee against the dollar. Analysts anticipate another rise by the central bank on June 30 during the first economic review meeting for the fiscal 2008-2009, starting from July 1.

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