The rupee/dollar parity rates remained under pressure in the inter-bank market last week, money experts said.
The rupee lost 10 paisa versus dollar for buying and selling at Rs 58.97 and Rs 58.98, respectively.
In the open market, the rupee somehow managed to gain slightly versus dollar for buying and selling at Rs 59.55 and Rs 59.65, dealers said.
The rupee posted 35 paisa appreciation versus euro for buying and selling at Rs 72.25 and Rs 72.55 on rising its value throughout the week on the back of dollar's depreciation versus leading currencies, they added.
Analysts said that recent flare-up in world oil prices inflated payment bills. In the meantime, market sources said that under the circumstances this year the target of five percent inflation rate has been crossed but now next target should be below seven percent.
Rising remittances helped stabilise foreign exchange reserves position, which may be a positive factor for rupee's firmness versus dollar in the coming days.
According to the State Bank data, foreign exchange sent back home by overseas workers went up by 16 percent to 669 million dollars in the first two months of the current fiscal year.
Market analysts said that at a time when the whole world is under uncertain condition, Pakistanis living abroad are preferring to keep their hard earnings in their home should be understandable. Apparently it's very encouraging news, they observed but the country does not appear to be benefiting from these positive developments as leading investors are pouring their money into other countries by investing in business.
Despite the fact that the county is facing severe unemployment and inflation, the government is inviting the businessmen to participate in this run, instead of providing them opportunities for investing their own homeland. No doubt this would definitely help control the unemployment rate.
According to the SBP, the country's foreign exchange reserves rose by 22 million dollars to 12.181 billion dollars due to an increase in inflows.
Currency analysts said that steady trend in remittances from abroad stabilised the foreign exchange position as most of them are using official channels for money transfers.
In the meantime, dollars requirement is high and the rupee-dollar parity is near to cross the Rs 59 level and see when the cat comes out of the bag, they added.
On Tuesday, tight money supplies in the inter-bank market helped the rupee to hold its prevailing levels versus dollar for buying and selling at Rs 58.90 and Rs 58.92, dealers said.
According to the market sources, rupee firmed as higher payment created liquidity crunch in the market.
On Wednesday, the rupee-dollar parity rate was close to touch the resistance level at Rs 69 versus dollar due to payment requirements by oil companies, dealers said.
The rupee, however, closed at Rs 58.96 and Rs 58.99 amid extended demand for dollars, they added.
On Thursday, the rupee held on to its present levels versus dollar on the back of indirect intervention by the State Bank, hovering at Rs 58.97 and Rs 58.98 for buying and selling, respectively.
On Friday, the rupee failed to recover its lost ground versus the greenback for buying and selling at Rs 58.96 and Rs 58.98, respecting, dealers said.
On September 14, the local currency managed to gain five paisa in relation to dollar for buying and selling at Rs 59.55 and Rs 59.65.
The euro recovered 20 paisa for buying and selling at Rs 72.90 and Rs 73.20, respectively.
On September 15, the rupee firmly held its prevailing levels at Rs 59.55 and Rs 59.65. It, however, shed five paisa versus euro for buying and selling at Rs 72.65 and Rs 72.95, respectively.
On September 16, the rupee stayed put versus greenback for buying and selling at Rs 59.55 and Rs 59.65. It, however, managed to gain some 40 paisa versus euro for buying and selling at Rs 72.20 and Rs 72.50.
On September 17, the rupee firmly held it prevailing levels versus dollar for buying and selling at Rs 59.58 and Rs 59.63, respectively. It depicted slightly change versus euro for buying and selling at Rs 72.30 and Rs 72.60, dealers said.