KARACHI, Jan 9: The euro made a huge recovery of both inter- bank and open currency market here on Friday after losing ground to the local currency on Thursday.

In the inter-bank market the single European currency closed at Rs73.18 up 90 paisa from Thursday's close of Rs72.18 and in the open market it shot up to Rs73.30 up Re1 overnight. On Thursday the euro had lost 48 paisa to rupee in the inter-bank market and 60 paisa in the open market as the US dollar had made some recovery against it in the international markets.

But as predicted by currency strategists world over the dollar recovery proved short-lived and lost more than a cent to the euro after a key monthly US employment report showed that job creation fell short of market expectations.

The lesser-than expected rise in payrolls coincided with a 41st successive month of job losses for manufacturing with 26,000 more posts cut. That weakened the US dollar in the world currency markets.

The euro, as reported in the international press, was trading at $1.272 but after the release of the US job data rose by more than a cent to $1.2852, beating Tuesday's previous lifetime high of $1.2812. Pound Sterling also shot up to a new 11-year peak at $1.8440.

This reflected immediately in the euro-rupee and sterling-rupee exchange rates in Pakistan - both in the inter-bank as well as in the open currency market.

Pound sterling that had slipped to Rs104.0603 in the inter- bank market on Thursday shot up to Rs105.1611 posting a gain of Rs1.10. In the open market also, it skyrocketed to Rs105.45 on Friday from Rs104.25 gaining Rs1.20 in a single session.

Money changers said the overnight huge increase in the value of the euro and sterling has sparked a selling spree among the local investors to bookprofits.