KARACHI, Jan 8: The euro on Thursday lost 48 paisa against the rupee in the inter-bank market and 90 paisa in the open currency market following a slight recovery of the dollar in international currency markets.

The single European currency closed at Rs72.18 in the inter- bank market down 48 paisa from the Wednesday's level of Rs72.66. In the open currency market money changers sold the euro for Rs72.30 on Thursday, down 60 paisa from Rs72.90 on Wednesday.

Senior bankers said the euro lost its value against the rupee in the inter-bank market here mirroring its slight fall against the dollar in the international market.

In the international market the US dollar rose from its record low against the euro on Tuesday as investors sold euros to book profits. On Tuesday, the euro had touched $1.2800 but on Thursday it went up to $1.2562 at early European trade before falling again to $1.2580 around noon.

Global wire services and newspapers quoted currency experts as saying that the euro may soon rise again. Local money changers said the demand for the euro may remain depressed for the time being in the local market because investors were out to book profits.

"But the single European currency may soon rise again once the selling spree is over - and it starts making some recovery in the international market," said head of a foreign exchange company.

Pound sterling also slipped slightly in both the inter-bank as well as open currency market here. The sterling went down to Rs104.0603 in the inter-bank market on Thursday from Rs104.1540 on Wednesday.

In the open market also it shed 15 paisa for spot selling by money changers, coming down to Rs104.25 on Thursday from Rs104.40 on Wednesday. Pound's slight fall against the rupee can also be attributed to the overall recovery the US dollar made against major currencies in the international market.

Lately, the euro and the sterling have started attracting investors in Pakistan who are frustrated over falling rates of return on bank deposits and national saving schemes.