Rupee/dollar parity rates turn erratic

24 Sep, 2004

The rupee-dollar parity rates turned very erratic in the interbank market on panic buying of the greenback in the absence of unusual selling by the State Bank of Pakistan (SBP), said currency experts. In the early hours, they said the dollar was available at Rs 59.40 due to its extensive demand, later during the day, it gave up morning's weakness as market received some supplies to depict 20 paisa loss at Rs 59.35 and Rs 59.38 for buying and selling, respectively.
It was not only two or five paisa fall, but was also the biggest slide of the season and sharp loss in a single day decline, they said, adding since the week began, the rupee lost 35 and during the current month it depreciated nearly 60 paisa.
The importers' forward dollar buying and the delay in selling export bills by the exporters forced the rupee to extend its slide versus the dollar, apparently because of high demand for the dollars from importers, said experts.
The exporters were holding back their proceeds, creating dearth of the dollars and causing more pressure on the rupee, said banking sources.
According to the market sources, a sharp rise in the oil prices globally turned the import bills higher.
It is interesting to note that what would be the next level of the rupee-dollar parity rate, whether the State Bank intensifies its dollar selling or just leaves it on the market forces, dealers said.
After the US invasion of Iraq, the world political scenario has changed, analysts said, adding its negative impacts have started surfacing such as the oil prices touched the new high.
The rupee, however, shed five paisa versus the euro for buying and selling at Rs 72.80 and Rs 73.10.



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KERB BUYING Rs 59.60
KERB SELLING Rs 59.65
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BUYING Rs 59.35
SELLING Rs 59.38
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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 7.40 7.45 7.40 7.45 7.43
1-Week 5.75 6.25 6.50 6.75 6.31
2-Week 4.50 4.75 5.00 5.25 4.88
1-Month 3.30 3.50 3.70 3.90 3.60
2-Months 3.10 3.25 3.50 3.70 3.39
3-Months 3.00 3.40 3.25 3.75 3.35
4-Months 3.25 3.50 3.75 4.00 3.63
5-Months 3.30 3.50 3.80 4.10 3.68
6-Months 3.25 3.50 3.75 4.00 3.63
9-Months 3.40 3.60 3.80 4.20 3.75
1-Year 3.75 4.00 4.25 4.50 4.13
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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 7.40 7.40 7.40 7.40 7.40
1-Week 6.00 6.50 6.75 7.00 6.56
2-Week 4.75 5.00 5.25 5.50 5.13
1-Month 3.40 3.60 3.75 4.00 3.69
2-Month 3.25 3.50 3.75 4.00 3.63
3-Month 3.50 3.70 4.00 4.20 3.85
4-Month 3.70 3.50 3.75 4.00 3.74
5-Month 3.25 3.90 4.10 4.25 3.88
6-Month 3.50 3.75 4.00 4.25 3.88
9-Month 3.60 3.90 4.10 4.25 3.96
1-Year 4.00 4.25 4.50 4.75 4.38
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The currency dealers said the dollar remained under heavy demand which helped appreciation in its worth against the rupee.
The dollar resumed trading at Rs 59.55 and Rs 59.65 on buying and selling counters, respectively. Its rate continued to move up and finally closed at Rs 59.60 and Rs 59.70 on buying and selling sides, respectively, as compared to Rs 59.50 and Rs 59.60 of Wednesday, they added.
Similarly, the rupee remained under pressure and further lost its value against the pound sterling. The pound's buying rate improved from Rs 106.20 to Rs 106.80, while selling rate increased from Rs 106.70 to Rs 107.10, the dealers said.
The greenback opened at Rs 59.60 (buying) and Rs 59.70 (selling) against the last rate of Rs 59.50 (buying) and Rs 59.60 (selling). It did not observe any further change in the second session, and closed at Rs 59.50 (buying) and Rs 59.60 (selling).
The pound sterling opened at Rs 107 (buying) and Rs 107.20 (selling) against the last rate of Rs 106.30 (buying) and Rs 106.40 (selling). It did not observe any further change in the second session, and closed at Rs 107 (buying) and Rs 107.20 (selling).
The Canadian dollar opened at Rs 46.20 (buying) and R 46.30 (selling). It did not observe any further change in the second session, and closed at Rs 46.20 (buying) and Rs 46.30 (selling).

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