The rupee moved both ways versus the dollar in the currency market last week during the rising demand for the greenback, money experts observed. In the open market, the rupee lost 15 paisa in relation to the dollar for buying and selling at 60.75 and 60.85 respectively, dealers said.
The rupee, however, did not show any major difference in the inter-bank market despite the increasing demand for dollars, maintaining its levels at 59.54 and 59.56, dealers said. Versus the euro, the rupee maintained its previous week level at 76.50 and 76.70, they added.
Currency experts were of the view that generally, the rupee has suffered from the losses due to strong demand for dollars for overseas payments.
They said the country has imported heavy machinery to improve outputs quality in the country for achieving export target. As a result of huge payments for the import of latest technologies, the prices of essential items went up sharply in the local market, which causes a significant rise in inflation rate, they added.
Recently, the State Bank of Pakistan (SBP) has raised its forecast for inflation at the end of June, and warned that if rising prices went unchecked the fast growing economy could suffer longer.
As a result of unusual rise in the inflation rate, the SBP has tightened the monetary system, and it had raised key discount rate by 150 points to nine percent.
It is also expected that further increase in the inflation might prompt the SBP to increase the interest rate, they said.
Since the oil prices started rising in the global markets, the demand for dollars increased in the local market as payments turned higher, money experts said.
Last week, the central bank warned the money exchanging companies to ward off the speculative trading, dealers said.
In fact, this factor has increased the demand for dollars and the other leading reason is an upward trend in the imports, which has pushed the demand for dollar up by the corporate sector to meet the oil and other payment requirements, money experts opined. The dollar most of the week maintained a firm posture in the global markets, dealers said.
OPEN MARKET RATES: On Monday, the rupee improved its worth by 15 paisa for buying and selling at 60.60 and 60.70 on easy supply of dollars, they said, adding but it did not show any major change versus the euro for buying and selling at 76.50 and 76.70, dealers said.
On Tuesday, minor changes were seen in the open market on Tuesday as the rupee shed five paisa in relation to the dollar for buying and selling at 60.65 and 60.75, dealers said.
According to the market sources, rising demand for the dollar by the corporate sector pushed its rates up. In the meantime, the rupee's fall is unlikely as the State Bank of Pakistan (SBP) is keeping a watch over the currency movement, they added.
Versus the euro, the rupee shed 10 paisa on the buying side at Rs 76.60 and it lost 20 paisa on the selling side at Rs 76.90, they added.
On Wednesday, falling trend was seen in the market as the rupee shed five paisa against the dollar for buying and selling at 60.70 and 60.80, dealers said.
Versus the euro, the rupee lost 10 paisa for buying at 76.70 while it maintained its selling level at 76.90, dealers said.
On Thursday, the buying pressure by the inter-bank market kept the rupee under pressure as it lost 20 paisa in a single day slide versus the dollar for buying and selling at 60.90 and 61.00, dealers said.
Some moneychangers at the Khanani and Kalia International said that the demand for dollar is high and this factor might push the rupee's value down in the coming days.
The rupee moved both ways versus the euro as it did not show any change on the buying side at 76.70 while it drifted lower on the selling side at 77.00, dealers said.
Upward trend was witnessed in the open market on Friday as the rupee recovered 15 paisa versus the dollar for buying at 60.75 and 20 paisa on the selling side at 60.80, dealers said.
Frequent supply of dollars helped the rupee match the emerging demand of the market, money-changers said, adding the rupee fluctuated but not very sharply due to easy supply of dollars.
Versus the euro, the rupee also managed to gain 20 paisa for buying at 76.50 and appreciated by 30 paisa at 76.70, dealers said.
The rupee did not show any major change versus the dollar for buying and selling at 60.75 and 60.85, respectively.
It adopted the same path versus the single European currency, holding the overnight levels for buying and selling at 76.50 and 76.70, dealers said.
INTER-BANK RATES: On May 23, a range-bound trading was again seen in the inter-bank market as the rupee-dollar parity held at 59.52 and 59.53, market men said.
On May 24, the rupee dropped one paisa versus the dollar for buying and selling at 59.53 and 59.54, they added.
On May 25, the rupee maintained its last level versus the dollar for buying and selling at 59.53 and 59.54, dealers said.
On May 26, downward revision was seen in the inter-bank market as the rupee shed three paisa versus the dollar for buying and selling at 59.56 and 59.57, respectively.
On May 27, the rupee sustained its overnight levels versus the dollar for buying and selling at 59.55 and 59.57, respectively.
On May 28, firm trend persisted in the inter-bank market as the rupee-dollar parity rates maintained overnight levels for buying and selling at 59.54 and 59.56, respectively.
According to the market sources, the rupee managed to hold its firmness on balanced demand and supply position of the dollars.
They also said that the rupee might show slight fluctuation ahead of the federal budget.
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