The rupee on the week's opening session managed to hold on to its weekend levels in the inter-bank market to trade at Rs59.79 and Rs59.81 on November 29, due to sufficient supply of dollars following State Bank of Pakistan's recent corrective measures.

It did not show any big change on November 30, and recovered 4 paisa for buying and 2 paisa for selling at Rs59.75 and Rs59.79 for a dollar.

On December 1, speculation about SBP intervention boosted rupee's value against the dollar. The rupee gained 15 paisa in the absence of major demand by the corporate sector.

The dollar changed hands at Rs59.55 and Rs59.60. Slight improvement in remittances and dollar selling by exporters also boosted the rupee value in terms of dollar.

Dollars supply increased following the selling of export proceeds and less buying interest by the importers on December 2. Easy availability of dollars did not allow the rupee to show sharp fluctuation over its previous day's level and traded at Rs59.58 and Rs59.62.

The rupee in the inter bank market extended its firmness over the dollar on December 3, in quiet trading posting fresh gains of 10 paisa, which was quoted at Rs59.47 and Rs59.50 on continued increase in dollar supply. During the week, the rupee managed to recover 33 paisa in the inter bank market against the dollar.

In kerb trading, the rupee maintained its weekend levels on November 29, trading at Rs60.00 and Rs60.10 for a dollar. On November 30, the rupee came under pressure on slight increase in demand for dollars.

It shed five paisa to trade at Rs60.05 and Rs60.15 versus the dollar. On December 1, the rupee posted fresh gain of 15 paisa versus dollar, changing hands at Rs59.90 and Rs60.05.

On December 2, the rupee did not show any major change trading at Rs59.95 and Rs60.05 for a dollar. The rupee maintained its overnight levels showing no change for the third consecutive day on December 3. The dollar remained traded at Rs59.95 and Rs60.05. In the entire week, the rupee in the open market recovered 10 paisa versus the dollar.

The European common currency maintained its climb on persistent gain versus dollar in international markets. In the local currency market the euro maintained its appreciation versus the rupee, which lost 10 paisa on November 29, trading at Rs79.10 and Rs79.40.

On November 30, the euro maintained its surge, gaining five paisa at Rs79.15 and Rs79.45. The euro further gained 10 paisa changing hands at Rs79.25 and Rs79.55 on December 1.

On December 2, it maintained its overnight surge versus the rupee, picking up more 20 paisa to trade at Rs79.45 and Rs79.75. The rupee managed to recover 35 paisa versus the European single currency, as the euro slipped to Rs79.10 and Rs79.40 on December 3. As a result, the rupee trimmed its losses versus the euro to 10 paisa this week.

In the world market, dollar was under pressure from leading currencies, euro and yen, on worries about major central banks' trimming dollar assets. It firmed slightly on November 29, recovering from last week's record low against the euro and a 4-1/2-year trough against the yen, but sentiment toward dollar assets remained negative.

The dollar's weakness was underlined by its inability to profit from the growing yield advantage of US Treasuries over European assets. Foreign investors generally and central banks particularly were unloading US assets.

In late New York trading, the euro was at $1.3269, just below its record high set last week close at $1.3329. Against the Japanese yen, the dollar was up 0.26 per cent at 102.81 yen. Sterling was trading down 0.05 per cent at $1.8932.

In London, sterling held below last week's 9-month high against the recovering dollar after a mixed batch of data from the UK consumer. Against the dollar, the pound was trading at $1.8940, steady on the day but below its 9-month high at $1.9040 set last week.

On November 30, the dollar was weaker against the euro but above record lows reached after remarks by European Central Bank chief suggested the ECB was unlikely to intervene to stem the euro's rise.

The euro pushed briefly to record highs around $1.3334, above a record high hit last week of $1.3329. In New York, the euro was traded at $1.3292, up 0.17 per cent in the session. Against the yen, the dollar traded at 102.93 yen, up 0.10 per cent and well above a 4-1/2-year low of 102.12 yen hit last week.

In London, sterling hit a 9-month high against a struggling dollar after comments from the Bank of England fanned expectations that Britain's economic prospects were better than recently feared.

The pound gained more than one per cent against the dollar to $1.9131, its strongest level in nine months, before easing to $1.9107. This compared with February's peak of $1.9140, its highest level since 1992.

On December 1, the dollar fell as traders ignored fairly robust US economic reports and instead focused on the currency's long-term negatives, sending the currency to a record low against the euro. In thin New York trade, the euro surged to a new record high around $1.3360.

The euro was at $1.3351, up 0.5 per cent in the session. Against the yen, the dollar was down at 102.50 yen, up from last week's 4-1/2-year low of about 102.15 yen. The pound boosted by strong UK manufacturing data, surged more than 1 per cent to around $1.9357, its highest since Britain was ejected from Europe's Exchange Rate Mechanism in 1992.

The dollar rallied on December 2, as fears of dollar buying intervention and a sharp fall in oil prices convinced traders that it was a good time to take profits after days of heavy dollar sales.

After registering another all-time low against the euro overnight, the dollar rose as high as $1.3239 per euro. The dollar had set new lows against the euro in seven of the last eight seasons. The greenback also rose from a five-year low against the yen and a new 12-year bottom against sterling.

In New York, the euro was down 0.43 per cent at $1.3272, far below the record high of $1.3383 touched in overnight trade. Against the yen, the dollar was up 0.53 per cent at 103.15 yen well off a five-year low of 101.86 yen reached earlier. Sterling was down 0.44 per cent to $1.9241 after earlier posting a new 12-year high of $1.9438.