The rupee drifted lower versus the dollar in the currency market last week, dealers said.
In the interbank market, the rupee lost ten paisa in relation to the dollar for buying and selling at Rs 57.55 and Rs 57.57.
In the open market, the dollar was available at Rs 58.02 and Rs 58.07. The euro was quoted at Rs 69.80 and Rs 70.10 for buying and selling.
The rupee suffered losses on dollar's increased demand by gold importers as the currency market re-opened on Tuesday after observing Eid-e-Milad holiday on Monday, money viewers said. They said that despite dollar's sharp recovery in the world market, the yellow metal was shining in the local market due to marriage season in the country.
The rise was seasonal, they said, as the greenback was likely to lose its value in the open market. Dollar's sharp rise in the open market narrowed the gap between official and kerb market rates, they said.
If the State Bank of Pakistan allows gold importers to buy dollars from banks, the erosion may be limited in the open market, they said.
Encouraging news was that the exports target crossed the 10 billion dollars mark during the ten months of the current fiscal year. In the meantime, the trade gap soared by 69.72 percent to 2,011 million dollars.
OPEN MARKET RATES: On Tuesday, the rupee extended its fall versus the euro, losing 25 paisa for buying and selling at Rs 69.70 and Rs 70.00, moneychangers said. Slight appreciation in euro in international markets helped it to expand its rise versus the local currency, they added.
The rupee also commenced the week on a negative note with improved dollar demand. The local currency shed 10 paisa versus the dollar for buying at Rs 58.05 and 10 paisa for selling at Rs 58.10, dealers said. They said that the greenback strengthened on increased banks demand for their immediate requirements.
On Wednesday, the rupee failed to come out of its persistent weakness versus the euro, losing 65 paisa for buying and selling at Rs 70.32 and Rs 70.62, dealers said.
The rupee did not move to any side versus the dollar for buying and selling at Rs 58.05 and Rs 58.10, moneychangers said.
President of Forex Association of Pakistan (FAP), Malik Bostan, said that if the dollar goes down in the international markets, the local currency may be able to expand its appreciation.
On Thursday, the rupee recovered seven paisa in relation to the dollar for buying and selling at Rs 57.95 and Rs 58.05.
The local currency stayed firm versus the single European currency and was quoted at Rs 70.30 and Rs 70.60 for buying and selling, respectively.
On Friday, the rupee shed five paisa versus the dollar for buying and selling at Rs 58.00 and Rs 58.10. The rupee gained 20 paisa versus the euro for buying and selling at Rs 69.80 and Rs 70.10.
On Saturday, the rupee gained two paisa versus the dollar for buying and selling at Rs 58.02 and Rs 58.07. The euro was available at Rs 69.80 and Rs 70.10 for buying and selling, respectively.
INTERBANK RATES: On May 4, same pattern was mirrored in the interbank market as the rupee shed three paisa in relation to the dollar for buying and selling at Rs 57.46 and Rs 57.47, respectively.
On May 5, the rupee shed two paisa versus the dollar for buying and selling at Rs 57.48 and Rs 57.50, respectively.
On May 6, increased dollar demand forced the rupee to break an important mark of Rs 57.50 in the interbank market, dealers said.
So, the rupee lost five paisa for buying and selling at Rs 57.53 and Rs 57.55, dealers said.
On May 7, the rupee did not show major change versus the dollar for buying and selling at Rs 57.54 and Rs 57.56, respectively.
The dollar strengthened in the world markets after emergence of some more encouraging news about the US economy, currency observers said.
The dollar is showing its strength versus the major currencies following the positive US economic outlook. The dollar also gained on expectations of rise in the US interest rates in the near future.
On May 8, the rupee shed one paisa in the interbank market for buying and selling at Rs 57.55 and Rs 57.57, respectively.