Panic buying of dollars by importers caused dearth of the US currency. Amid volatile session dollar touched the new high at 66.78, resulting in the State Bank of Pakistan's (SBP) intervention in the interbank market on Monday to rescue the rupee as it was expected earlier, leading money experts said.
The rupee recovered its lost ground, showing no change for buying at Rs 65.80 while it shed five paisa for selling at 65.90 in process of trading following the central bank move, they said. But some currency experts said that the rupee's gain may proved short-lived as the demand for dollars is not declining, instead, it is gaining momentum, they said.
The rupee, which has been under pressure since the start of year 2008, has slipped by nearly 5 percent. Now it appears that it is going to widen its losses if dollar buying continues without any shadow of the SBP umbrella, they said.
A number of stock investors after shifting their position from share market to forex, were also visible among the buyers, perhaps unpredictable conditions on the economic and political fronts forced them to invest in dollars, they said.
Soaring oil prices in the world market and political instability are the major factors behind the fall in the rupee's value during the last 4-5 months, analysts said. In the Asian market, during the second session, the US dollar was broadly weaker as doubts resurfaced about the health of the US economy while record oil prices lifted commodities and currencies such as the Canadian dollar.
Even the Australian dollar rose as a tentative pick up in risk appetite boosted high-yielders but it retreated after the Reserve Bank of Australia kept its cash rate steady and said aggregate demand in the economy was significantly lower.
OPEN MARKET RATES: According to the official closing on the open market, the rupee crossed the barrier of 67 due to increasing demand for dollars by the interbank market, they said.
The rupee lost 30 paisa in relation to the dollar for buying and selling at 66.95 and 67.05, they said. The rupee also failed to resist erosion in its value versus euro, losing 80 paisa for buying and selling at Rs 103.50 and Rs 103.60, they said.
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Open Buying Rs 66.95
Open Selling Rs 67.05
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Interbank Closing Rates: Interbank Closing Rates For Dollar On Tuesday.
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Buying Rs 65.80
Selling Rs 65.90
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Repo Rates (Yield p a)
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Tenor Low Bid High Bid Low Offer High Offer Average
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Overnight 10.40 10.45 10.40 10.45 10.43
1-Week 9.25 9.50 9.40 9.60 9.44
2-Weeks 9.20 9.35 9.30 9.50 9.34
1-Month 9.25 9.40 9.35 9.55 9.39
2-Months 9.50 9.60 9.60 9.75 9.61
3-Months 9.55 9.65 9.60 9.75 9.64
4-Months 9.65 9.85 9.80 9.95 9.81
5-Months 9.75 9.95 9.85 10.10 9.91
6-Months 9.75 10.10 9.85 10.20 9.98
9-Months 9.80 10.10 9.90 10.20 10.00
1-Year 10.00 10.15 10.10 10.25 10.13
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Call Rates (Yield p a)
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Tenor Low Bid High Bid Low Offer High Offer Average
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Overnight 10.50 11.00 10.75 11.25 10.88
1-Week 9.50 9.75 9.75 10.00 9.75
2-Weeks 9.50 9.75 9.75 10.00 9.75
1-Month 9.50 10.00 9.75 10.25 9.88
2-Months 9.90 10.25 10.10 10.40 10.16
3-Months 10.00 10.25 10.25 10.40 10.23
4-Months 10.00 10.40 10.25 10.60 10.31
5-Months 10.25 10.75 10.40 11.00 10.60
6-Months 10.25 11.00 10.50 11.25 10.75
9-Months 10.40 11.00 10.60 11.25 10.81
1-Year 10.50 11.00 10.75 11.50 10.94
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RUPEE IN LAHORE: The rupee lost five paisa on buying side at Rs 66.90 and remained unchanged on selling side at Rs 67.20 at Lahore currency market on Tuesday.
The dollar closed higher at Rs 66.90 and Rs 67.20 on buying and selling sides against Monday's closing of Rs 66.85 and Rs 67.20. The rupee failed to get out of pressure and lost its value against the British pound whose buying rates moved up from the overnight closing of 131.50 to Rs 131.70 and selling rate from Rs 132.00 to Rs 132.20.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar opened at Rs 66.70 (buying) and Rs 66.90 (selling) against same last rate. It did not observe any change in the evening session and closed at Rs 66.70 (buying) and Rs 66.90 (selling). Pound sterling opened at Rs 131.50 (buying) and Rs 131.60 (selling) against last rate of Rs 130.70 (buying) and Rs 131 (selling). It did not observe further change in the evening session and closed at Rs 131.50 (buying) and Rs 131.60 (selling).
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