LONDON: The dollar fell to the lowest levels for months against the euro and the yen on Friday as upbeat economic data reduced demand for the safe-haven greenback, dealers said.

The euro rose to a near nine-month high of 1.4627 dollars in early London trading.

The dollar dropped to 90.98 yen — the lowest level since mid-February.

In later London trade, the European single currency stood at 1.4591 dollars compared with 1.4583 dollars in New York late on Thursday.

Against the Japanese currency, the dollar fell to 91.04 yen from 91.74 yen on Thursday.

Gold headed back towards 1,000 dollars an ounce as the weak US unit made the metal cheaper for buyers holding rival currencies, pushing up demand, dealers said.

“The dollar continues to move lower setting a new low for the year against the euro… while the dollar has fallen more sharply against the yen,” said Derek Halpenny, European head of global currency research at The Bank of Tokyo-Mitsubishi UFJ in London.

“Risk appetite has been supported by mostly positive economic data from China,” he added.

Chinese economic numbers fuelled dollar weakness on Friday and investor risk appetite, underlining hopes of a global economic recovery, said Rabobank International economist Jeremy Stretch.

China said industrial activity expanded by 12.3 percent last month and retail sales jumped 15.4 percent, while urban fixed asset investment rose 33 percent in January-August due to massive government spending on construction.

Traders snapped up the currencies of countries exporting commodities to the Asian powerhouse, notably the Australian dollar.

In contrast to the upbeat Chinese data, Japan revised down its estimate of second-quarter growth to 0.6 percent, from an initial estimate of 0.9 percent.

Most analysts meanwhile expect the dollar to weaken further amid a growing sense that recovery from the worst global economic crisis in decades is taking root.

With the economic outlook brightening, traders tend to shun the dollar in favor of riskier currencies that appeared more profitable, like the euro.

Elsewhere, the British pound strengthened after the Bank of England on Thursday left its monetary policy unchanged, holding its key lending rate at a record low 0.5 percent and maintaining emergency stimulus measures to prevent the economy from sliding deeper into recession.

In London on Friday, the euro was changing hands at 1.4591 dollars against 1.4583 dollars late on Thursday, at 132.89 yen (133.81), 0.8747 pounds (0.8756) and 1.5148 Swiss francs (1.5141).

The dollar stood at 91.04 yen (91.74) and 1.0380 Swiss francs (1.0381).

The pound was at 1.6687 dollars (1.6651).

On the London Bullion Market, the price of gold jumped to 998.88 dollars an ounce from 990.75 dollars an ounce late on Thursday.

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KHAIRPUR: The Khairpur police launched a massive operation on Thursday to arrest the killers of SHO Imam Bakhsh Koraie.

The funeral rites of t

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ISLAMABAD: Prime Minister Syed Yusuf Raza Gilani on Friday said resolution of core issue of Kashmir was the key to good ties with India and for peace and stabilit of South Asia.

Talking to Prime Minister of Azad Jammu Kashmir (AJK) Sardar Muhammad Yaqub Khan here at the PM House, the Prime Minister said lasting peace in the region and the world can be ensured only if a solution to the long standing dispute of Jammu and Kashmir was found.

The Prime Minister accorded approval for fortification of Muzaffarabad Dam at a cost of Rs. 42 million. He also directed release of funds for construction of Wapda Model Town in Muzaffarabad.

Sardar Yaqub Khan thanked Prime Minister Gilani for approving the proposals for increasing induction in police force, increasing their capacity and establishment of Police Training College.

Sardar Yaqub briefed the Prime Minister about the progress on the Urban Development Programme in AJK, payment of remaining tranches of compensation to the completed houses in Rural Housing and construction on Muzaffarabad and Rawalakot Campuses of King Abdullah University of AJK and District Headquarters Complex Bagh and Rawalakot.

He informed the Prime Minister that Rs. 13 billion have been spent during the preceding financial year in AJK on Reconstruction Programme while expected expenditure on the under-execution and project under process of award was estimated at Rs. 27 billion.

He said slow progress in the education sector was affecting the overall progress and special strategy was being devised to expedite the pace or reconstruction work.

The meeting also discussed matters relating to the release of funds against AJK PSDP for 2009-10, construction of Lower Topa-Kohala Express Way, provision of natural gas to Muzaffarabad, Rawalakot and Mirpur, enhancement in allocation for the Rathoa-Harryam Bridge Mirpur project and waiving off of conditions imposed on Payara Kashmir Program.

AJK Prime Minister?s participation in the meeting of OIC Contact Group on Kashmir on the sidelines of the forthcoming UN General Assembly session was also discussed.

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ISLAMABAD: President Asif Ali Zardari has rejected the Obama administration?s strategy of linking policy on Pakistan and Afghanistan in an effort to e

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KARACHI: Pakistan hockey selection committee member Shafiq Ahmed has expressed hope that the national team would easily qualify for the World Cup.

He said that the series against European teams before the World Cup Qualifiers would prove helpful in preparations of the team.

In a talk with Geo News in Karachi, Shafiq Ahmed said that the selection committee selected the team of the best available players for the World Cup Qualifiers.

He said that the team management has also an option of playing four players who are taking part in the European League and it is therefore being hoped that the ?green shirts? would make their place in the world Cup by winning this event easily.

Replying to a question, Shafiq said that the cool weather of France would not create problems for the players of Pakistan team.

He further said that the series against France and Belgium before the World Cup Qualifiers would prove very much helpful for Pakistan.

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KARACHI: Pakistan hockey selection committee member Shafiq Ahmed has expressed hope that the national team would easily qualify for the World Cup.

He said that the series against European teams before the World Cup Qualifiers would prove helpful in preparations of the team.

In a talk with Geo News in Karachi, Shafiq Ahmed said that the selection committee selected the team of the best available players for the World Cup Qualifiers.

He said that the team management has also an option of playing four players who are taking part in the European League and it is therefore being hoped that the ?green shirts? would make their place in the world Cup by winning this event easily.

Replying to a question, Shafiq said that the cool weather of France would not create problems for the players of Pakistan team.

He further said that the series against France and Belgium before the World Cup Qualifiers would prove very much helpful for Pakistan.

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RAWALPINDI: The security forces continued Friday the search and clearance operations in Swat and Malakand during last 24 hours.

According to a press release issued by Inter Services Public Relations (ISPR), at least four terrorists voluntarily surrendered to security forces in Bar Shaur area of Swat.

Also four other terrorists including commander Nisar voluntarily surrendered to security forces in Damghar near Kanju area in Swat.

The security forces carried out search operation in Kad near Sardari and killed 2 terrorists and apprehended five suspects. Also, the forces carried out search operation in Narai Sar Banda and demolished two caves and four terrorists hideouts.

The security forces carried out search operation in Ahingro Derai and Takhtaband and apprehended 6 terrorists.

Local lashkar demolished over 100 terrorists houses in Dhok Darra in Dir. At least 13 suspects voluntarily surrendered to security forces in Zamindara Post.

Security forces apprehended two suspects from Kalapani.

The security forces continued relief activities, as 296,944 cash cards have been distributed amongst the IDPs of Malakand.

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KARACHI: Pakistani stocks ended up on Friday on buying from foreign investors but off its early gains as local institutions booked profits as the benchmark index crossed the 9,000 points.

The Karachi Stock Exchange’’s (KSE) 100-share index closed 62.58 points, or 0.70 percent, higher at 9,058.77 on turnover of 157 million shares.

The index has gained 54.45 percent this year after losing 58.3 percent in 2008.

”Local investors succumbed to the psychological barrier of 9,000 points and booked profits, despite continued foreign interest,” said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

The KSE-index has advanced over several sessions as some foreign investors were drawn by Pakistan’’s improving macroeconomic fundamentals.

According to official data, foreign investors bought shares worth $95.3 million in August and $88.81 million in the first ten days of September.

Among blue chips, Oil and Gas Development Co. Ltd. rose 2.25 percent to 111.99 rupees, National Bank of Pakistan, gained 1.61 percent to 78.89, and Pakistan Oilfields, ended 2.72 percent higher at 216.19 rupees.

In the currency market, the rupee ended weaker at 82.82/87 to the dollar compared with Thursday’’s close of 82.77/87 due to payments for imports.

Dealers said the rupee was expected to face downward pressure because of import payments.

However the rupee has been supported by remittances from Pakistanis working overseas.

Remittances rose 31.78 percent to a record $780.53 in August, compared with $592.30 million in the same month last year.

The rupee has lost 4.5 percent this year after losing 22.12 percent in 2008.

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