THE RUPEE: sharp fall versus dollar

22 Jun, 2006

Falling trend persisted in the open market on Wednesday as the rupee drifted lower versus the dollar, shedding 15 paisa for buying at 60.65 and sliding 10 paia for selling at 60.70, dealers said.
Increased demand by the corporate sector kept the rupee in the minus territory and it is expected that the local currency unit may lose more ground, they observed.
The euro shrugged of the weakness versus the rupee, recovering 40 paisa for buying and selling at Rs 76.40 and Rs 76.50, they said.
In the world markets, the dollar eased versus the leading currencies following the expectations that the Bank of Japan will end its zero-interest rate policy in the coming days.
They said that the availability of dollar to meet the import bills payment requirements helped the rupee to retain its present levels.
The State Bank of Pakistan (SBP) is providing dollars from its reserves to cover the extra-ordinary payments, they said.



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Buying Rs 60.65
Selling Rs 60.70
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Buying Rs 60.26
Selling Rs 60.28
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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 7.00 8.90 7.50 8.95 8.09
1-Week 8.00 8.50 8.25 8.75 8.38
2-Weeks 8.30 8.60 8.50 8.70 8.53
1-Month 8.25 8.60 8.50 8.75 8.53
2-Months 8.30 8.65 8.50 8.75 8.55
3-Months 8.30 8.65 8.50 8.70 8.54
4-Months 8.40 8.65 8.55 8.70 8.58
5-Months 8.40 8.65 8.55 8.70 8.58
6-Months 8.50 8.70 8.65 8.75 8.65
9-Months 8.60 8.75 8.75 8.85 8.74
1-Year 8.70 8.80 8.80 8.85 8.79
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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 7.50 9.00 8.00 9.10 8.40
1-Week 8.50 8.75 8.65 8.90 8.70
2-Weeks 8.75 9.00 8.90 9.25 8.98
1-Month 8.60 9.00 8.80 9.25 8.91
2-Months 8.75 9.25 9.00 9.50 9.13
3-Months 8.90 9.30 9.15 9.50 9.21
4-Months 9.00 9.50 9.25 9.75 9.38
5-Months 9.25 9.50 9.40 9.75 9.48
6-Months 9.35 9.60 9.50 9.75 9.55
9-Months 9.50 10.00 9.80 10.25 9.89
1-Year 9.60 10.00 9.80 10.25 9.91
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According to the currency dealers, the dollar's trading commenced at Rs 60.60 and Rs 60.70 as its buying and selling rates, respectively. As a result of increase in the demand for dollar, its rate moved up and closed at Rs 60.65 and Rs 60.75 on buying and selling sides, respectively, as against Rs 60.55 and Rs 60.65 of Tuesday, the dealers said.
Similarly, the local currency failed to maintain upward trend and lost its worth against the pound sterling. The pound's buying rate improved from Rs 111.30 to Rs 111.40 while its selling rate went up from Rs 111.70 to Rs 111.80, they added.
The dollar opened at Rs 60.35 (buying) and Rs 60.45 (selling) against the overnight value. It did not observe any further change in the evening session and closed at Rs 60.35 (buying) and Rs 60.45 (selling).
Pound sterling opened at Rs 111.50 (buying) and Rs 111.60 (selling) against the previous rate. It did not observe any change in the second session and closed at Rs 111.50 (buying) and Rs 111.60 (selling).

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