High demand for dollars forced the rupee to touch the new low and give up its stability versus the US currency at 85 on the interbank market on Saturday, marketmen said. The rupee lost 25 paisa against dollar for buying and selling at 85.05 and 85.10, they said.
The rupee was under pressure against dollar as on December 5, 2009, the State Bank of Pakistan (SBP) announced that banks will clear all oil payments, which basically caused higher demand for dollars and weakness of the rupee, currency viewers said. Importers were also busy in forward buying of dollars in anticipation of increase in oil prices on the globe, they added.
The SBP said late Tuesday that exchange rate volatility during the first half of the 2009/10 fiscal year was 2.7 percent, compared with 10.5 percent in the same period last year, which showed exchange rate stability with improving macroeconomic fundamentals. Some dealers said that dollar inflows in shape of remittances from overseas workers had also helped the rupee retain, to some extent, its value in recent days.
In the meantime it is most likely that as a result of fall in the rupee, the exports may get lift from the bottom side, experts said. In the month of January 2010, the rupee hit the record levels twice in a month at 85 and 86 due to panic buying of dollars, they added. 'So, we can expect further decline in the value of the rupee versus dollar in the coming days', they said.
At the weekend the dollar rose against major currencies after stronger-than-expected economic data reinforced the view the United States was recovering from recession faster than other developed countries. The euro fell below $1.39 to a 6-1/2-month low as investors remained concerned about the fiscal health of some of the smaller Euro zone countries including Greece and Portugal.
Data showed the US economy grew at a 5.7 percent annual rate in the fourth quarter, its quickest pace in more than six years. Separate reports showed business activity in the US Midwest expanded more than expected, while consumer sentiment hit a two-year high.
OPEN MARKET RATES: The rupee continued slide against dollar, losing 10 paisa for buying and selling at 86.20 and 86.30, dealers said. The local currency, however, posted fresh gain of Rs 1.20 versus euro for buying and selling at Rs 118.50 and Rs 119.00, they added.
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Buying Rs 85.05
Selling Rs 85.10
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Saturday.
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Open Buying Rs 86.20
Open Selling Rs 86.30
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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 11.90 12.40 12.00 12.40 12.18
1-Week 11.65 12.05 11.95 12.10 11.94
2-Week 11.70 11.95 11.95 12.00 11.90
1-Month 11.75 11.95 11.90 12.00 11.90
2-Months 11.75 11.95 11.90 12.00 11.90
3-Months 11.75 11.95 11.95 12.00 11.91
4-Months 11.80 12.00 12.00 12.10 11.98
5-Months 11.80 12.00 12.00 12.10 11.98
6-Months 11.80 12.00 12.00 12.10 11.98
9-Months 11.85 12.00 11.95 12.15 11.99
1-Year 11.90 12.00 12.00 12.10 12.00
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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 12.40 12.20 12.45 12.26
1-Week 12.00 12.15 12.10 12.20 12.11
2-Week 11.85 12.10 11.90 12.15 12.00
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 failed to maintain its worth and lost 20-paisa in relation to the greenback in the open currency market on Saturday.
Because of fresh demand, the dollar showed strength and registered handsome gain against the rupee. According to the moneychangers, the dollar was slid up and closed at Rs 86.30 and Rs 86.60, as compared to Friday closing of Rs 86.00 and Rs 86.40 on buying and selling sides, respectively, the dealers said.
However, the rupee maintained upward slide and further improved against the pound sterling. The pound was slipped and ended at Rs 137.50 and Rs 138.50 on buying and selling counters against the overnight closing of Rs 138.00 and Rs 138.60, respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the open currency markets of Islamabad and Rawalpindi here on Saturday.
The dollar opened at Rs 86.00 (buying) and Rs 86.10 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 86.00 (buying) and Rs 86.10 (selling).
Pound Sterling opened at Rs 138.80 (buying) and Rs 138.90 (selling) against the last rate. It did not observe further change in the last trading hours and closed at Rs 138.80 (buying) and Rs 138.90 (selling).
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