It looks that the dollar after hitting the 68 level versus the rupee on the open market on Monday, is now heading toward the new destinations, currency viewers said. On the open market the US currency gained 25 paisa against the rupee for buying and selling at 86.00 and 86.10, dealers said. Versus the euro, the rupee also came down shedding 55 paisa for buying and selling at Rs 121.10 and Rs 121.60, they added.
The free-fall of the rupee was not unexpected it was coming versus dollar gradually, since the SBP's move. on December 5 2009 the State Bank of Pakistan (SBP) shifted the entire load of oil payments of around 10 billion dollars to the private sector, much earlier than the given deadline on pressure from the International Monetary Fund (IMF). Since the move taken by the SBP, the rupee has lost 2.40 versus dollar on the open market and on the interbank market it fell by Re.1 in terms of the greenback, they said.
In the meantime, experts believe that the Bank would have to intervene in the exchange regime to keep a grip over the exchange rate fluctuations after sharp erosion in the Pak rupee. Commenting on the present trend in the market some money experts said that the smuggling of dollars, weak economic fundamentals and deteriorating political situation in the country, are no doubt responsible for the free-fall of the local currency. On the one hand the sellers have no dollar to sell. This is causing higher rate of the US currency, they observed.
But on the other hand, it is most likely that the market may observe profit-taking or black-marketing in the dollar business as the Hundi or Hawala wala, who have dollars, just waiting to make big profits, they added. This is happening despite the fact last week the central bank in a meeting with the money changers directed them to keep a close watch on fluctuations of rupee-dollar parity on the open market. But in vein, because the SBP has to take some steps to ease the pressure over the dollar supply, they said.
In the first Asian trade yen and US dollar dipped while euro and high-yielding currencies advanced, lifted by reports that Ben Bernanke was moving closer towards being confirmed for a second term as chairman of the Federal Reserve. Markets have been fretting since late last week over whether Bernanke would be approved for the job. On the interbank market the rupee rose by 3 paisa in relation to dollar for buying and selling at 84.60 and 84.65, they said. In the late evening dollar was trading at Rs 86.10 and 86.30 for buying and selling respectively.
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Buying Rs 84.60
Selling Rs.84.65
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday.
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Open Buying Rs.86.00
Open Selling Rs.86.10
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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 11.75 12.15 11.90 12.25 12.01
1-Week 11.65 11.95 11.90 12.00 11.88
2-Week 11.65 11.95 11.95 12.00 11.89
1-Month 11.70 11.95 11.90 12.00 11.89
2-Months 11.75 11.90 11.90 12.00 11.89
3-Months 11.75 11.95 11.95 12.05 11.93
4-Months 11.85 12.00 12.00 12.10 11.99
5-Months 11.85 12.00 12.00 12.10 11.99
6-Months 11.85 12.05 12.00 12.15 12.01
9-Months 11.90 12.05 12.05 12.15 12.04
1-Year 11.95 12.05 12.05 12.15 12.05
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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 11.80 12.15 11.90 12.25 12.03
1-Week 11.85 12.10 11.90 12.15 12.00
2-Week 11.80 12.10 11.90 12.15 11.99
1-Month 11.85 12.10 12.00 12.20 12.04
2-Months 11.90 12.15 12.10 12.25 12.10
3-Months 12.00 12.25 12.15 12.30 12.18
4-Months 12.15 12.25 12.20 12.30 12.23
5-Months 12.15 12.30 12.20 12.35 12.25
6-Months 12.15 12.30 12.25 12.35 12.26
9-Months 12.15 12.40 12.35 12.45 12.34
1-Year 12.25 12.45 12.40 12.50 12.40
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RUPEE IN LAHORE: The Pak rupee opened on a depressed note and depreciated its worth by 10 paisa against the US dollar in the local currency market on Monday. According to the currency dealers, the dollar recorded fresh demand that pushed the rupee's rate further down from the last week closing. The dollar showed strength and finally ended higher at Rs 86.00 and Rs 86.30 as its buying and selling rates against the Saturday closing of Rs 85.90 and Rs 86.20, respectively, the dealers said.
Similarly, the rupee lost its value on buying side while it stayed unchanged against the pound sterling. The pound was traded at Rs 138.00 and Rs 138.60 on buying and selling counters as compared to previous week closing of Rs 137.60 and Rs 138.60, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar-rupee parity remained unchanged at the open currency markets of Islamabad and Rawalpindi here on Monday. The dollar opened at Rs 85.45 (buying) and Rs 85.55 (selling) against the same overnight value. It did not observe further change in the evening session and closed at Rs 85.45 (buying) and Rs 85.55 (selling).
Pound Sterling resumed trading at Rs 138 (buying) and Rs 138.10 (selling) against the same last rate. It did not observe further change in the second session and closed at Rs 138 (buying) and Rs 138.10 (selling).
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