The rupee-dollar parity rates moved both ways in currency market last week amid high demand for the greenback to meet the widening import bills' payments, money experts said.
In the inter-bank market, the rupee somehow managed to hold its previous week's levels for buying and selling at Rs 59.83 and Rs 59.84, respectively, dealers said.
They said that in open market the rupee, however, lost 20 paisa in relation to US currency for buying and selling at Rs 60.30 and Rs 60.40, respectively.
The rupee also shed 30 paisa against euro for buying at Rs 73.00 and 40 paisa on the selling counter at Rs 73.20.
Experts said that demand for dollars went up in the inter-bank market to make high payment requirements of the import bills.
The import bills turned bullish after the soaring oil prices in the world markets despite the fact that internationally the US currency was not in a strong position due to its own grievances. Locally, they said, the rupee might strive to limit its losses on the back of remittances, which might show a significant increase during Ramazan.
Traditionally, it is observed that overseas Pakistanis send money to kith and kin for preparation of the Eid-ul-Fitr. Additionally, the State Bank of Pakistan (SBP) was keeping an eye over currency movement to ward off speculative trading in forex regime.
However, some analysts saw slight erosion in the value of rupee as the soaring oil prices made the import bills higher, which pushed the dollar demand up in the local market as well.
This factor pushed all essential products' prices up locally. Prices have already gone up but masses feel that the some corrective and practical approach might curb the black-marketing during the Ramazan.
WORLD MARKET SCENARIO FOR DOLLAR: The dollar posted gains versus leading currencies last week. Japanese yen was up versus dollar in early sessions but later its gains were trimmed.
The dollar also strengthened versus euro on post-election political stalemate in Germany.
The dollar gained versus euro as political uncertainty continued to roil Germany. The polls failed to produce a clear winner between the Social Democrats and Christian Democrats.
In the middle of the week, the dollar drifted lower as worries over resurgent oil prices weighed against expectations of an increase in the US interest rates.
The dollar held near a six-week high after the Federal Reserve raised US interest rates and left the doors open for even higher borrowing costs.
After the Fed move, it seemed that the dollar would continue its firmness versus major currencies in the coming days.
OPEN MARKET RATES: On Monday, downward trend was seen as the rupee drifted lower versus dollar, shedding five paisa for buying at Rs 60.10, and 10 paisa for selling at Rs 60.20.
Dollars' buying pressure in the inter-bank market pushed the rupee value down in the open market.
The rupee showed modest fluctuations versus euro for buying and selling at Rs 72.70 and Rs 72.80.
On Tuesday, the rupee maintained its overnight level versus dollar for buying and selling at Rs 60.10 and Rs 60.20 in thin business.
The rupee posted gain of 10 paisa versus euro for buying and selling at Rs 72.80 and Rs 72.90.
On Wednesday, easy supply position of dollars helped the rupee to maintain its firmness versus the US currency in the open market on Wednesday at Rs 60.10 and Rs 60.20 for buying and selling, respectively.
Continued demand for dollars by importers pushed the greenback value higher slightly, experts said. They said that the government was importing heavy machinery and latest technologies to achieve Gross Domestic Production (GDP) target and other estimations.
The rupee lost 35 paisa in terms of euro for buying and selling at Rs 73.15 and Rs 73.20 as the European single currency managed to recover modestly in the overseas markets.
General trend in the open and inter-bank markets was soft on Thursday as a result of higher demand by the corporate sector's demand for dollars to meet the import payment requirements.
Dollars' rising demand in the open market, kept the rupee under pressure, losing five paisa versus the greenback of buying and selling at Rs 60.15 and Rs 60.25, respectively.
The rupee also drifted lower versus euro, shedding 10 paisa for buying and selling at Rs 73.25 and Rs 73.35.
On Friday, bearish sentiment was seen as the rupee drifted lower versus dollar, shedding 10 paisa for buying and selling at Rs 60.25 and Rs 60.35, respectively.
Rising demand for dollars in the inter-bank market dragged the rupee down.
According to the Federal Bureau of Statistics, during the last two months of the current fiscal year, the import bills showed 44.27 increase to 4.231 billion dollars.
The rupee gained 30 paisa in relation to euro for buying and selling at Rs 73.00 and Rs 73.10 as a result of dollars' persistent firmness in the overseas markets.
On Saturday, falling trend persisted in the open market as the rupee shed five paisa against dollar for buying and selling at Rs 60.30 and Rs 60.40, respectively.
Versus the euro, the rupee stayed put for buying at Rs 73.00 while it shed 10 paisa for selling at Rs 73.20.
INTER-BANK MARKET: On September 19, the rupee did not show major change versus dollar for buying and selling at Rs 59.85 and Rs 59.87, respectively.
On September 20, firm trend was witnessed as the rupee held on to its overnight level for buying and selling at Rs 59.85 and Rs 58.86 amid balanced demand and supply position.
On September 21, the rupee fluctuated moderately on increased demand for dollars, slipping two paisa for buying and selling at Rs 59.87 and Rs 59.88, respectively.
On September 22, the rupee shed one paisa versus US currency for buying and selling at Rs 59.88 and Rs 59.89, respectively.
On September 23, modest increase in the inflows boosted the rupee, which recovered three paisa versus dollar for buying and selling at Rs 59.85 and Rs 59.86.
On September 24, the rupee managed to recover two paisa against dollar for buying and selling at Rs 59.83 and Rs 59.84.
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