KARACHI, June 26: The euro shot up to Rs59.30/Rs59.50 in the kerb market on Wednesday up 100 paisa or more than 1.5 per cent from the previous close of Rs58.30/Rs58.50 for spot buying and selling.

Forex Association of Pakistan president Malik Bostan said the new rates mirrored the impressive gain that the euro made against the US dollar in the international market on Wednesday.

The single European currency rose to 99 cents in early trade for the first time since January 2000 up from 97 cents on Tuesday as dollar nose-dived on report of a huge $3.8 billion hole in the accounts of the US telecommunication giant Worldcom.

“The euro shot up purely in line with its rise in the world market...there was no major demand from the local investors,” said Bostan. But he said the continuous rise of the euro against the dollar would eventually make it popular with the local investors as well. Internationally investors have already moved from the US dollar to euro and Japanese yen.

Wire reports said despite an intervention by the Ministry of Finance of Japan to cap the rise of the yen the Japanese unit traded well above 120 to a US dollar—its highest parity in the last seven and a half months.

Money changers said the British pound sterling also gained significantly on Wednesday. They said the sterling rose to Rs91.60/Rs91.80 for spot buying and selling against the last close of Rs90.40/Rs90.60.

They said the sterling gained 1.3 per cent solely due to its continuing upward march against the greenback in the world currency market.

The euro and the sterling mirrored their huge gains against the US dollar also in the inter-bank market. The euro closed around Rs59.40 and the sterling around Rs91.45 for ready selling against the previous close of Rs58.30 and Rs90.05 respectively.

The rupee has so far depreciated by about 13.5 per cent against the euro since April. Against the sterling it has depreciated by a little less than 7 per cent. This is going to keep Pakistani exporters competitive in the eurozone and British markets.