The rupee fell to an all-time low against dollar on Friday on the currency market following the talks that President Pervais Musharraf may resign, money experts said. The Financial Times said on Friday Musharraf will resign rather than face impeachment by parliament, citing government officials and a member of his circle.
A spokesman for the President denied that he was about to quit.In the interbank market, the rupee touched the new low versus the US currency for buying and selling at 76.40 and 76.50, they said.
At a point during the day, the rupee touched 76.90 level due to panic buying of dollars. The rupee has lost more than 23 percent of its value against dollar this year, reflecting the country's shaky economy and political turmoil. There are mounting pressure on the Pakistan State Bank (SBP), to take some form of emergency action to halt the currency's dive although the bank is caught in a tight spot because it is cash crunch, some dealers said.
During the fifth and final session of the week, dollar struck a six-month high against euro, with more investors bailing out of bets favouring the single currency and commodities as evidence mounts of a slowing global economy. Gold tumbled nearly 3 percent to be below $800 and silver plunged 11 percent, prompting more investors to unwind their bets against dollar and driving the US currency's trade-weighted index up to a six-month high.
================================
Open Buying Rs 76.50
Open Selling Rs 77.00
================================
==============================
Buying Rs 76.40
Selling Rs 76.50
==============================
=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 12.75 12.90 12.90 12.95 12.88
1-Week 12.40 12.70 12.75 12.90 12.69
2-Week 12.25 12.50 12.50 12.75 12.50
1-Month 11.50 11.75 11.75 12.00 11.75
2-Months 11.75 12.10 12.00 12.20 12.01
3-Months 11.80 12.10 12.00 12.30 12.05
4-Months 11.85 12.10 12.10 12.30 12.09
5-Months 11.90 12.20 12.15 12.30 12.14
6-Months 11.90 12.25 12.15 12.35 12.16
9-Months 12.00 12.25 12.20 12.35 12.20
1-Year 12.10 12.25 12.20 12.40 12.24
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 13.00 15.00 13.50 15.50 14.25
1-Week 12.75 14.00 13.50 14.50 13.69
2-Week 12.75 14.00 13.00 14.50 13.56
1-Month 12.50 14.00 13.25 14.25 13.50
2-Months 13.00 14.00 13.50 14.50 13.75
3-Months 13.00 14.50 13.50 15.00 14.00
4-Months 13.00 14.50 13.75 15.00 14.06
5-Months 13.00 14.75 14.00 15.25 14.25
6-Months 13.50 15.00 14.00 15.50 14.50
9-Months 13.75 15.00 14.50 15.50 14.69
1-Year 14.00 15.50 14.75 15.75 15.00
=================================================================
Because of the dollar's rising demand that remained intact due to ongoing political uncertainty, the rupee remained under pressure throughout the day, moneychangers said, adding that the people prefer their saving in foreign currencies mainly in dollar because of rapid depreciation in the rupee's value. As a result, the dollar touched new high and crossed Rs 77 level and finally closed at Rs 76.50 and Rs 77.25 on buying and selling counters against the Wednesday closing of Rs 75.70 and Rs 76.00, respectively.
However, the rupee showed stability on buying side but declined on the selling side against the British pound. The pound's buying rate remained unchanged at the last closing level of Rs 141.50, while its selling rate increased from Rs 142.20 to Rs 142.75.
Pound Sterling opened at Rs 142 (buying) and Rs 143 (selling) against same previous rate. It did not observe further change in the evening session and closed at Rs 142 (buying) and Rs 143 (selling).