Payment to the International Monetary Fund (IMF) and sharp fall in the gold rates caused panic buying of dollar on local currency market on Thursday, dealers said. Some experts said that big payment to the IMF at the month-end and steep fall in the gold prices propelled investors to shift their position from gold to dollar, besides, during the summer vacations people visit foreign countries to spend summer holidays and purchased dollars to meet their requirements which pushed the rupee to surrender its firmness versus the dollar. One of the major factors that Pakistan was hoping for five billion dollars loan from IMF could be a reason behind that slide, they added.
On Thursday, on the foreign market, gold plunged to its lowest in more than 2-1/2 years, with investors exiting in droves after the US Federal Reserve gave its most explicit signal yet that it plans to bring the era of easy money to an end. Fed Chairman Ben Bernanke said on Wednesday the US economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year. The US dollar rose broadly on Thursday as global asset markets underwent sharp adjustments in the wake of confirmation by the Federal Reserve that it would begin to dial down stimulus this year as the economic outlook improves. The dollar was trading against the Indian Rupee at 58.71, the greenback was available versus the Malaysian Ringgit at 3.1950 and greenback was at 6.1310 in terms of Chinese yuan.
Interbank buy/sell rates for the taka against the dollar on Thursday:77.75-77.76 (77.75-77.77). Call Money Rates: 05.25-07.50 percent (previous 05.25-07.50 percent).
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Open Bid Rs 99.90
Open Offer Rs 100.10
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Bid Rate Rs.98.85
Offer Rate Rs.98.87
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According to the currency dealers, following sudden decline in the gold price in the international markets, the dollar registered sharp gain and was slide up from overnight closing of Rs 99.80 and Rs 100.00 to Rs 100.00 and Rs 100.50 on buying and selling sides, respectively.
On the contrary, the national currency staged recovery and was improved against the pound sterling. The pound's buying and selling rates were declined from Wednesday closing of Rs 155.50 and Rs 156.00 to Rs 154.40 and Rs 155.00, respectively, the dealers said.
The dollar opened at Rs 99.40 for buying and Rs 99.60 for selling against last rate. It did not observe further change in the second session and closed at Rs 99.40 for buying and Rs 99.60 for selling. Pound Sterling opened at Rs 151.70 for buying and Rs 155 for selling against same last rate. It closed at the same rate without further change by the end of evening session.