The rupee hit nearly one-and-a-half-year low versus dollar in interbank market on Friday, losing six paisa at Rs 58.26 and Rs 58.28 for buying and selling, respectively, experts said.
It was due to corporate demand and debt payments which kept the rupee under pressure, dealers said, adding that since the new fiscal tear started, the rupee has lost 16 paisa versus dollar from Rs 58.12 to Rs 58.28.
The rupee's fall started from the beginning of last session of 2003-04 financial year as banks accelerated dollar buying from open market to clear payments, analysts said.
The rising oil prices in international markets made oil import bills higher due to the said reason, they added.
The market observed that in May last, the rupee was available at Rs 57.44, and now it is available at Rs 58.26, depicting a fall of nearly one rupee in the interbank market.
They said that the rupee might see further slide in near future as there are still some payments due, and added that the dollar may be available at Rs 58.40 in the coming days.
According to some analysts, country's current account surplus declined further and this could be a reason for a weakening rupee.
According to Reuters, the current account surplus shrank by more than half in the first 11 months of fiscal 2003/04 to 1.84 billion dollars from 3.77 billion dollars in the same period a year earlier on higher oil costs and increased imports, according to data released this week.
DOLLARS' SELLING EASES PRESSURE OVER RUPEE IN OPEN MARKET: In the early session on Friday, the rupee came under heavy pressure due to interbank dollars buying and did not show any change in its overnight levels at Rs 58.48 and Rs 58.53, dealers said.
But in the afternoon session, the rupee reversed its weakness, recovering 18 paisa following banks' dollar selling to arrest the greenback's artificial gain, dealers said.
They said that the banks injected dollars on the direction of State Bank of Pakistan (SBP) in the open market to ease pressure on the rupee but they expected that this relief could be short-lived following the extended dollars' demand from the interbank market.
The rupee also slid versus the euro, losing 15 paisa for buying and selling at Rs 71.95 and Rs 72.25 on expanding its grounds globally, dealers said.
Rising fears about terrorist attacks on the United States and fresh rise in world oil prices pushed the dollar at four-month low versus euro.
According to currency experts, the greenback may not show significant improvement in its value versus major currencies ahead of US election.On the back of dollar's slide, the euro might touch the new high in the international markets as well in the local market, they added.
At a point, the euro rose to 1.2416 dollar. Right now the euro is able to shine versus yen on lack of buying interest ahead of Japanese upper house elections, they observed.
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Kerb Buying Rs 58.30
Kerb Selling Rs 58.40
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INTERBANK CLOSING RATES: Interbank closing rates for dollar on Friday.
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Buying Rs 58.26
Selling Rs 58.28
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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 0.10 0.20 0.20 0.30 0.20
1-Week 0.20 0.40 0.60 0.80 0.50
2-Week 0.50 0.70 0.90 1.00 0.78
1-Month 1.00 1.20 1.40 1.60 1.30
2-Months 1.25 1.50 1.75 2.00 1.63
3-Months 1.70 1.90 2.10 2.30 2.00
4-Months 2.00 2.20 2.40 2.60 2.30
5-Months 2.10 2.30 2.50 2.70 2.40
6-Months 2.10 2.30 2.50 2.70 2.40
9-Months 2.75 3.00 3.25 3.50 3.13
1-Year 3.00 3.25 3.50 3.75 3.38
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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 0.20 0.30 0.40 0.50 0.35
1-Week 0.40 0.60 0.60 0.80 0.60
2-Week 0.70 0.90 1.10 1.30 1.00
1-Month 1.20 1.40 1.60 1.80 1.50
2-Month 1.50 1.75 2.00 2.25 1.88
3-Month 1.90 2.10 2.30 2.50 2.20
4-Month 2.20 2.40 2.60 2.80 2.50
5-Month 2.30 2.50 2.70 2.90 2.60
6-Month 2.30 2.50 2.70 2.90 2.60
9-Month 3.00 3.25 3.50 3.75 3.38
1-Year 3.25 3.50 3.75 4.00 3.63
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RUPEE IN LAHORE: The rupee maintained upward slide and further appreciated its value by five-paisa in relation to the greenback in the local currency markets on Friday.
The dollar's selling continued for the second consecutive day, which pushed its rate down against the local currency.
The dollar resumed trading at Thursday's closing rates of Rs 58.50 and Rs 58.60 on buying and selling counters, respectively. With the increase in dollar's supply, its rate declined to Rs 58.45 on buying side and Rs 58.55 on selling side.
The currency dealers were of the view that the dollar may further register marginal decline in its value within next couple of days.
Similarly, the rupee come out of pressure and appreciated its worth versus the pound sterling. The British currency was purchased at Rs 107.45 and was sold at Rs 107.75 as compared to overnight closing rates of Rs 107.80 and Rs 108.20, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The buying and selling rates of rupee against the dollar remained unchanged at the currency exchange establishments of Islamabad and Rawalpindi here on Friday.
The dollar opened at Rs 58.35 (buying) and Rs 58.45 (selling) against last rate of Rs 58.40 (buying) and Rs 58.50 (selling). It did not observe any further change in the evening session and closed at Rs 58.35 (buying) and Rs 58.45 (selling).
Pound sterling opened at Rs 107.30 (buying) and Rs 107.50 (selling) against last rate of Rs 106.60 (buying) and Rs 106.80 (selling). It did not witness any further change in the second session and closed at Rs 107.30 (buying) and Rs 107.50 (selling).
Canadian dollar opened at Rs 43.80 (buying) and Rs 43.90 (selling) against same overnight value. It also did not witness any further change in the second session and closed at Rs 43.80 (buying) and Rs 43.90 (selling).
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