Uncertainties over the political and economic fronts pushed the rupee down against dollar on the interbank market on Wednesday, shedding 70 paisa versus the dollar for buying at 71.00 and it also lost 65 paisa for selling at 71.05, dealers said.
Importers demand for dollar pushed the rupee lower. Furthermore, portfolio outflows also played an important role in the fall of the rupee, market players said. The falling trend in the rupee continues despite the State Bank of Pakistan (SBP) last week decision to clear all oil payments to stabilise the rupee after it set its weakest ever closing level at 72.85 and 72.90 for buying and selling on July 8, 2008.
It appeared that the main measure was a temporary suspension of forward booking of foreign currency for all imports, removing the simplest way for importers to hedge against a weakening rupee. In the second Asian session, the dollar fell towards a record low against the euro as investors fretted about the US financial system and took little comfort from the government's emergency plan to support the top mortgage lenders.
The US government's rescue plan only underscored the severity of the credit market problems from the deteriorating housing market. Along with the economic damage from record oil prices, market players have all the more reason to sell the dollar, traders said.

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Open Buying             Rs 71.20
Open Selling            Rs 71.60
================================

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Buying                Rs 71.00
Selling               Rs 71.05
==============================
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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     10.50        7.50       11.00          9.00
1-Week      10.00     10.30       10.25       10.40         10.24
2-Week      10.10     10.40       10.30       10.50         10.33
1-Month     10.30     10.50       10.50       10.60         10.48
2-Months    11.50     11.60       11.65       11.75         11.63
3-Months    11.65     11.75       11.75       11.80         11.74
4-Months    11.65     11.75       11.75       11.80         11.74
5-Months    11.70     11.80       11.75       11.85         11.78
6-Months    11.70     11.80       11.75       11.90         11.79
9-Months    11.80     11.90       11.90       11.95         11.89
1-Year      11.80     11.90       11.90       11.95         11.89
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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     13.25       12.50       13.50         12.81
1-Week      11.50     13.00       12.00       13.50         12.50
2-Week      11.50     13.00       12.00       13.50         12.50
1-Month     12.00     13.50       13.00       14.00         13.13
2-Months    12.00     14.00       13.00       14.50         13.38
3-Months    12.50     14.50       13.50       15.00         13.88
4-Months    13.00     14.50       14.00       15.00         14.13
5-Months    13.50     14.50       14.00       15.50         14.38
6-Months    14.00     14.75       14.50       15.50         14.69
9-Months    14.25     15.00       14.75       16.00         15.00
1-Year      14.50     15.50       15.00       16.00         15.25
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