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The rupee fell nearly by two percent against dollar on Thursday due to hovering uncertainties over the political settlement among the leading parties, money experts said. In the interbank the rupee lost sharply against dollar for buying and selling at 76.10 and 76.20, they said.
At a point, during the day, the rupee touched the low at around 76.30, they said adding that it was also rumoured that the rupee hit the new low at 77. It is noteworthy that the rupee fell cheaper in interbank than in the open market for second time within a short period.
They observed that the rupee fell sharply due to higher demand for dollars and at the same time, upward trend in imports caused the country's widening trade and fiscal deficits, falling reserves, and soaring inflation as well. As a whole it can be said that the general trend on the currency market was weak as the rupee's gain proved short-lived versus dollar.
It is need of the hours that the emerging problems faced by the nation must the solved forthwith, some analysts said. The rupee, which weakened to record lows for five consecutive sessions last week, hit a record low of 76.95 against dollar on August 15, 2008. Its last record-low closing level was struck on August 16 at around 76.60 and 76.65.
The Wall Street Journal said on Thursday former prime minister Nawaz Sharif, who leads the coalition's second biggest party, may pull out of the coalition if it does not decide by Friday to reinstate the judges. In the fourth Asian trading dollar edged down, slipping from an eight-month high against a basket of currencies as investors booked profits on the US currency's surge this month and oil prices pushed higher.
Persistent worries that a bailout of US mortgage finance giants Fannie Mae and Freddie Mac could pose further risks to an already battered financial system also made investors cautious on the dollar.
OPEN MARKET RATES: The rupee failed to maintain its firmness, shedding its value against dollar for buying and selling at 75.05 and at 75.40, they said. The rupee also lost steeply against euro for buying and selling at 110.30 and Rs 110.50, they added.



================================
Open Buying Rs 75.05
Open Selling Rs 75.40
================================

Interbank Closing Rates: Interbank Closing Rates For Dollar On Thursday.



==============================
Buying Rs 76.10
Selling Rs 76.20
==============================
=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 12.75 12.90 12.90 12.95 12.88
1-Week 12.40 12.50 12.60 12.70 12.55
2-Week 12.25 12.50 12.50 12.60 12.46
1-Month 12.10 12.40 12.40 12.50 12.35
2-Months 11.90 12.20 12.00 12.30 12.10
3-Months 11.90 12.25 12.10 12.30 12.14
4-Months 12.00 12.25 12.10 12.30 12.16
5-Months 12.00 12.25 12.15 12.30 12.18
6-Months 12.00 12.25 12.20 12.35 12.20
9-Months 12.00 12.25 12.20 12.35 12.20
1-Year 12.10 12.25 12.20 12.40 12.24
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 13.00 14.50 13.50 15.00 14.00
1-Week 12.75 14.00 13.25 14.50 13.63
2-Week 12.75 14.00 13.00 14.50 13.56
1-Month 12.50 14.00 13.25 14.25 13.50
2-Months 13.00 14.00 13.50 14.50 13.75
3-Months 13.00 14.50 13.50 15.00 14.00
4-Months 13.00 14.50 13.75 15.00 14.06
5-Months 13.00 14.75 14.00 15.25 14.25
6-Months 13.50 15.00 14.00 15.50 14.50
9-Months 13.75 15.00 14.50 15.50 14.69
1-Year 14.00 15.50 14.75 15.75 15.00
=================================================================

RUPEE IN LAHORE: The rupee maintained downward trend and registered sharp fall in its value against the US dollar in the currency market here on Thursday. Because of the news regarding development of difference among the coalition rulers on the issue of judges, the dollar remained under aggressive demand, which pushed the rupee value further down. At the end of trading, the dollar closed higher at Rs 75.50 and Rs 76.50 against Wednesday's closing of Rs 74.50 and Rs 75.00 on buying and selling sides, respectively.
Similarly, the rupee also remained under pressure against the British pound and recorded significant loss in a single day trading. The pound jumped from the overnight closing of Rs 137.60 and Rs 138.50 to Rs 140.50 and Rs 142.00 on buying and selling counters, respectively.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar in Monday showed an improvement of Rs 1.20 against the rupee at the open currency markets of Islamabad and Rawalpindi The dollar opened at Rs 75.70 (buying) and Rs 75.90 (selling) against last rate of Rs 74.50 (buying) and Rs 74.60 (selling). There was no further change in the evening session and closing was seen at Rs 75.70 (buying) and Rs 75.90 (selling). Pound Sterling opened at Rs 141 (buying) and Rs 142 (selling) against last rate of Rs 138 (buying) and Rs 139 (selling). No further change was observed in the evening session and closing was seen at Rs 141 (buying) and Rs 142 (selling).
Copyright Business Recorder, 2008

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