Uncertainties over the political and economic fronts pushed the rupee down against dollar on the interbank market on Wednesday, shedding 70 paisa versus the dollar for buying at 71.00 and it also lost 65 paisa for selling at 71.05, dealers said.
Importers demand for dollar pushed the rupee lower. Furthermore, portfolio outflows also played an important role in the fall of the rupee, market players said. The falling trend in the rupee continues despite the State Bank of Pakistan (SBP) last week decision to clear all oil payments to stabilise the rupee after it set its weakest ever closing level at 72.85 and 72.90 for buying and selling on July 8, 2008.
It appeared that the main measure was a temporary suspension of forward booking of foreign currency for all imports, removing the simplest way for importers to hedge against a weakening rupee. In the second Asian session, the dollar fell towards a record low against the euro as investors fretted about the US financial system and took little comfort from the government's emergency plan to support the top mortgage lenders.
The US government's rescue plan only underscored the severity of the credit market problems from the deteriorating housing market. Along with the economic damage from record oil prices, market players have all the more reason to sell the dollar, traders said.
OPEN MARKET RATES: The rupee fell and lost 100 paisa or Re.1 versus dollar for buying and selling at 71.20 and 71.60, they said. The rupee also depreciated by 65 paisa against the euro for buying and selling at Rs 111.25 and Rs 111.45, dealers said.
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Open Buying Rs 71.20
Open Selling Rs 71.60
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Interbank Closing Rates: Interbank Closing Rates For Dollar On Wednesday.
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Buying Rs 71.00
Selling Rs 71.05
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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 7.00 10.50 7.50 11.00 9.00
1-Week 10.00 10.30 10.25 10.40 10.24
2-Week 10.10 10.40 10.30 10.50 10.33
1-Month 10.30 10.50 10.50 10.60 10.48
2-Months 11.50 11.60 11.65 11.75 11.63
3-Months 11.65 11.75 11.75 11.80 11.74
4-Months 11.65 11.75 11.75 11.80 11.74
5-Months 11.70 11.80 11.75 11.85 11.78
6-Months 11.70 11.80 11.75 11.90 11.79
9-Months 11.80 11.90 11.90 11.95 11.89
1-Year 11.80 11.90 11.90 11.95 11.89
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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 12.00 13.25 12.50 13.50 12.81
1-Week 11.50 13.00 12.00 13.50 12.50
2-Week 11.50 13.00 12.00 13.50 12.50
1-Month 12.00 13.50 13.00 14.00 13.13
2-Months 12.00 14.00 13.00 14.50 13.38
3-Months 12.50 14.50 13.50 15.00 13.88
4-Months 13.00 14.50 14.00 15.00 14.13
5-Months 13.50 14.50 14.00 15.50 14.38
6-Months 14.00 14.75 14.50 15.50 14.69
9-Months 14.25 15.00 14.75 16.00 15.00
1-Year 14.50 15.50 15.00 16.00 15.25
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RUPEE IN LAHORE: The rupee continued downward slide for the third consecutive day and further declined by Re 1 on buying side at Rs 72.00 and 80 paisa on selling side in relation to the greenback in the Lahore currency market on Wednesday.
As a result of growing demand for the dollar, its rate recorded sharp increase in a day's trading. The dollar closed higher and its buying rate jumped from overnight closing of Rs 71.00 to Rs 72.00 while its selling rate moved up from Rs 71.50 to Rs 72.30.
The rupee also remained under pressure and further depreciated its worth against the British pound. At the end of trading, the pound's buying and selling rates increased from Tuesday closing of Rs 140.30 and Rs 141.00 to Rs 141.40 and Rs 142.50, respectively.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the open currency markets of Islamabad and Rawalpindi on Wednesday.
The dollar opened at Rs 70.80 (buying) and Rs 71.00 (selling) against the last rate. It did not observe any change in the evening session and closed at Rs 70.80 (buying) and Rs 71.00 (selling).
Pound Sterling opened at Rs 141.00 (buying) and Rs 141.50 (selling) against the overnight value. It did not observe any change in the second session and closed at Rs 141.00 (buying) and Rs 141.50 (selling).
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