May 20, 2003	Tuesday	Rabi-ul-Awwal 17, 1424

KARACHI, May 19: The euro skyrocketed to Rs67.67 in the inter-bank market here on Monday from the weekend close of Rs65.93 as the single European currency reached a new four-year high in the international market.

International wire services reported that the euro shot up to $1.1712 in the world markets as Washington indicated to accept a weaker dollar.

Senior bankers said the SBP worked out the mid-rate of euro at Rs67.67 up Rs1.74 or 2.6 per cent against the weekend close of Rs65.93.

They said there was no extra ordinary rush for euro in the local market adding that its rise against the dollar made it dearer. In Pakistan the price of euro — like that of other major currencies — is determined in relation with the US dollar that is still number one currency for transacting international trade.

In the kerb market also, the euro shot up to Rs67.50/Rs67.80 for spot buying and selling up 75 paisa for selling from the weekend close of Rs66.75/ Rs67.05. Currency dealers said the euro gained substantially reflecting its rise against the dollar in international market.

The euro has been on the rise for quite some time both in the local inter-bank as well as open currency market. But whereas its rise in the inter-bank market is directly linked with its upward journey in the world market, there is also an extra element of speculation in its open market value. Currency dealers say some speculators have been buying euros to get momentary gains. But they say that speculators are showing only limited interest in the euro adding that had the stock market not been too bullish these days the euro would have attracted many more speculators.