It looks that the dollar after hitting the 68 level versus the rupee on the open market on Monday, is now heading toward the new destinations, currency viewers said. On the open market the US currency gained 25 paisa against the rupee for buying and selling at 86.00 and 86.10, dealers said. Versus the euro, the rupee also came down shedding 55 paisa for buying and selling at Rs 121.10 and Rs 121.60, they added.
The free-fall of the rupee was not unexpected it was coming versus dollar gradually, since the SBP's move. on December 5 2009 the State Bank of Pakistan (SBP) shifted the entire load of oil payments of around 10 billion dollars to the private sector, much earlier than the given deadline on pressure from the International Monetary Fund (IMF). Since the move taken by the SBP, the rupee has lost 2.40 versus dollar on the open market and on the interbank market it fell by Re.1 in terms of the greenback, they said.
In the meantime, experts believe that the Bank would have to intervene in the exchange regime to keep a grip over the exchange rate fluctuations after sharp erosion in the Pak rupee. Commenting on the present trend in the market some money experts said that the smuggling of dollars, weak economic fundamentals and deteriorating political situation in the country, are no doubt responsible for the free-fall of the local currency. On the one hand the sellers have no dollar to sell. This is causing higher rate of the US currency, they observed.
But on the other hand, it is most likely that the market may observe profit-taking or black-marketing in the dollar business as the Hundi or Hawala wala, who have dollars, just waiting to make big profits, they added. This is happening despite the fact last week the central bank in a meeting with the money changers directed them to keep a close watch on fluctuations of rupee-dollar parity on the open market. But in vein, because the SBP has to take some steps to ease the pressure over the dollar supply, they said.
In the first Asian trade yen and US dollar dipped while euro and high-yielding currencies advanced, lifted by reports that Ben Bernanke was moving closer towards being confirmed for a second term as chairman of the Federal Reserve. Markets have been fretting since late last week over whether Bernanke would be approved for the job. On the interbank market the rupee rose by 3 paisa in relation to dollar for buying and selling at 84.60 and 84.65, they said. In the late evening dollar was trading at Rs 86.10 and 86.30 for buying and selling respectively.

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Buying                Rs 84.60
Selling               Rs.84.65
==============================

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Open Buying           Rs.86.00
Open Selling          Rs.86.10
==============================
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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    11.75     12.15      11.90        12.25        12.01
1-Week       11.65     11.95      11.90        12.00        11.88
2-Week       11.65     11.95      11.95        12.00        11.89
1-Month      11.70     11.95      11.90        12.00        11.89
2-Months     11.75     11.90      11.90        12.00        11.89
3-Months     11.75     11.95      11.95        12.05        11.93
4-Months     11.85     12.00      12.00        12.10        11.99
5-Months     11.85     12.00      12.00        12.10        11.99
6-Months     11.85     12.05      12.00        12.15        12.01
9-Months     11.90     12.05      12.05        12.15        12.04
1-Year       11.95     12.05      12.05        12.15        12.05
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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    11.80     12.15      11.90        12.25        12.03
1-Week       11.85     12.10      11.90        12.15        12.00
2-Week       11.80     12.10      11.90        12.15        11.99
1-Month      11.85     12.10      12.00        12.20        12.04
2-Months     11.90     12.15      12.10        12.25        12.10
3-Months     12.00     12.25      12.15        12.30        12.18
4-Months     12.15     12.25      12.20        12.30        12.23
5-Months     12.15     12.30      12.20        12.35        12.25
6-Months     12.15     12.30      12.25        12.35        12.26
9-Months     12.15     12.40      12.35        12.45        12.34
1-Year       12.25     12.45      12.40        12.50        12.40
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