Bearish sentiment was witnessed on the currency market on Wednesday as the rupee gave up its firmness due to heavy demand by the importers, experts said. At official closing, in the interbank market, the rupee shed 25 paisa in relation to dollar for buying at 68.60 while it also dropped by 40 paisa for selling at 68.80, they said.
They were of the opinion that if the exporters continue dollars' selling during the next four months, it was hoped that the rupee could be able to halt new erosion in its value versus the US currency, they said. Another factor, which is a pillar for any sector, is earlier resolution of the political issues in the country. For the last four months, it seems that issues are increasing on the political as well as on the economic side, they said.
Oil payments are rising with the passage of time, which is an apparent reason behind the dollar's rising demand by the importers, they said. The market observed modest dollar selling by the exporters on profit taking. Besides, there were some whispers that the State Bank of Pakistan (SBP) may take stern action to lift the rupee from the bottom and it is also likely that expected arrival of dollars within next few weeks, may help the rupee in resisting fall versus the US currency, they said.
Importers fresh demand for dollars pushed the rupee lower and despite the falling trend, some were expecting that the local currency may manage to gain some strength in the near-term. In the meantime, the rupee-dollar official parity rates were quoted by the Reuters at 68.60 and 69.10.
In the third session of the week in Asia, dollar steadied on Wednesday, keeping gains made on stronger-than-expected US retail sales data that supported the view that the Federal Reserve won't cut interest rates next month. The dollar got a boost after data on Tuesday showed that retail sales, excluding the hard-pressed auto sector, rose 0.5 percent in April, more than double the increase that economists had forecast.
OPEN MARKET RATES: Till the official closing, the rupee slide extended against dollar, losing 10 paisa more for buying and selling at 68.35 and 68.50, they said. The rupee failed to resist fall versus euro, droping 40 paisa for buying and selling at Rs 105.50 and Rs 105.60, they said.
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Open Buying Rs 68.35
Open Selling Rs 68.50
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Interbank Closing Rates: Interbank Closing Rates For Dollar On Wednesday.
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Buying Rs 68.60
Selling Rs 68.80
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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 9.00 10.25 9.50 10.40 9.79
1-Week 9.25 9.50 9.40 9.60 9.44
2-Weeks 9.25 9.50 9.40 9.60 9.44
1-Month 9.40 9.60 9.50 9.80 9.58
2-Months 9.60 9.90 9.80 10.00 9.83
3-Months 9.75 10.00 9.90 10.10 9.94
4-Months 9.75 10.00 9.90 10.15 9.95
5-Months 9.85 10.10 10.00 10.20 10.04
6-Months 9.85 10.10 10.00 10.20 10.04
9-Months 10.00 10.25 10.15 10.30 10.18
1-Year 10.00 10.25 10.20 10.40 10.21
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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 10.00 11.00 10.50 11.50 10.75
1-Week 10.00 10.75 10.50 11.00 10.56
2-Weeks 9.90 10.25 10.25 10.50 10.23
1-Month 9.90 10.50 10.25 10.75 10.35
2-Months 10.00 10.25 10.25 10.60 10.28
3-Months 10.10 10.40 10.30 10.60 10.35
4-Months 10.25 10.50 10.40 10.75 10.48
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 was unchanged against dollar at Rs 68.40 on the buying side on Lahore currency market on Wednesday but lost 20 paisa on the selling side at Rs 68.80.The dollar remained steady at the overnight closing level of Rs 68.40 on buying side while because of increase in dollar's demand, its selling rate moved up from Rs 68.60 to Rs 68.80. The pound closed at Tuesday's closing rate of Rs 132.00 on buying side while it rose on the selling side from previous closing of Rs 132.75 to Rs 133.00.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar was up by 30 paisa against rupee at the currency markets of Islamabad and Rawalpindi on Wednesday.
The dollar opened at Rs 68.60 (buying) and Rs 68.70 (selling) against last rate of Rs 68.30 (buying) and Rs 68.40 (selling). It did not observe any change in the evening session and closed at Rs 68.60 (buying) and Rs 68.70 (selling).
Pound sterling opened at Rs 132.60 (buying) and Rs 132.80 (selling) against last rate of Rs 132.40 (buying) and Rs 132.60 (selling). It did not observe further change in the evening session and closed at Rs 132.60 (buying) and Rs 132.80 (selling).
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