Panic-like buying of dollars was witnessed on the currency market during the week, ended on June 22, as the greenback hit new high at 100.35 versus the rupee on the open market. On the open market, the rupee fell against the dollar, losing 25 paisa for buying at Rs 100.10 and the national currency dropped by 20 paisa for selling at 100.35. The rupee also lost 25 paisa in terms of the euro for buying at Rs 132.25 and Rs 132.50.
On the interbank market, the rupee came under pressure versus the dollar, sliding 22 paisa for buying at 98.85 and national currency fell by 25 paisa for selling at 98.90.
Some experts attributed the fall in the value of the rupee to surge in dollar's demand for many factors. Present trend on the currency market is giving an impression that the rupee may cross 100.50 level against the dollar in the near future, they said.
The International Monetary Fund (IMF) is not interested in rescheduling of its outstanding loan. Pakistan was willing in scheduling of IMF loan but it looks that it has to pay in one instalment. The other reason behind the rupee's fall was sharp decline in gold prices, which attracted investors, who bought dollars from open market to purchase precious metal, and pushed the rates of dollar high. Gold prices have come down in the world markets and it has dropped by Rs 1800 per Tola on the local market at 50,500 dealers said.
On Thursday, in 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.
Besides, on Thursday, the State Bank of Pakistan (SBP) announced for slashing the policy interest rate by 50 basis points to nine percent, which will be effective from June 24.
INTER-BANK MARKET RATES: On Monday, the rupee drifted lower against the dollar, losing 13 paisa for buying and selling at 98.63 and 98.65. On Tuesday, the rupee shed five paisa in relation to the dollar for buying and selling at 98.68 and 98.70. On Wednesday, the rupee gave up it weakness against the dollar, gaining three paisa for buying and selling at 98.65 and 98.67. On Thursday, the rupee dropped 20 paisa against the greenback for buying and selling at 98.85 and 98.87. On Friday, the rupee was unchanged against the euro for buying at 98.85 and domestic currency fell three paisa for selling at Rs 98.90.
OPEN MARKET RATES: On June 17, the rupee showed no change in relation to the dollar for buying and selling at 99.60 and 99.80. The rupee managed to recover 25 paisa versus the euro for buying at Rs 132.00 and Rs 132.25.
On June 18, the rupee followed the same pattern, shedding 10 paisa for buying and selling at 99.70 and 99.90. The rupee also lost 75 paisa versus the euro for buying at Rs 132.75 and Rs 133.00.
On June 19, the rupee extended its slide versus the dollar, losing five paisa more for buying and selling at 99.75 and 99.95. The rupee also lost 25 paisa in terms of the euro for buying at Rs 133.00 and Rs 133.25.
On June 20, the rupee crossed the barrier of 100, shedding 15 paisa against the dollar for buying and selling at 99.90 and 100.10. The rupee, however, gained Re 1 in terms of the euro for buying at Rs 132.00 and Rs 132.25. On June 21, the rupee extended its fall against the dollar, losing 20 paisa for buying at Rs 100.10 and the national currency dropped by 25 paisa for selling at 100.35. The rupee also lost 25 paisa in terms of the euro for buying at Rs 132.25 and Rs 132.50.
OVERSEAS OUTLOOK FOR DOLLARS: In the first Asian trade, the yen eased on resilience in Japanese stocks, but stayed near a two-month high against the dollar and euro, as investors looked to when and how the US Federal Reserve will begin scaling down its stimulus.
The focus is on what Chairman Ben Bernanke will say following the US central bank's June 18-19 meeting as expectations that the Fed will start weaning markets off its stimulus have roiled global equities.
The dollar was trading against the Indian rupee at Rs 57.66, the greenback was at 3.1330 in terms of the Malaysian ringgit and the US currency was at 6.124 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 77.75-77.76 (77.75-77.75). Call Money Rates: 05.25-07.00 percent (previous 05.25-07.50 percent).
In the second Asian trade the US dollar hovered above a two-month low against the yen on Tuesday but struggled to extend gains on worries the US Federal Reserve could hint at withdrawing stimulus and unsettle financial markets.
The dollar was trading against the Indian rupee at Rs 58.47, the US currency was available at 3.1530 versus the Malaysian ringgit and the greenback was at 6.1276 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 77.75-77.76 (77.75-77.76). Call Money Rates: 05.25-07.50 percent (previous 05.25-07.50 percent).
In the third Asian trade, the dollar steadied against its major counterparts in Asia as investors held their collective breath awaiting the outcome of the Federal Reserve's rate-setting meeting for signals on the future course of US monetary policy. The dollar was trading against the Indian rupee at Rs 58.74, the greenback was available at 3.1570 versus the Malaysian ringgit and the US currency was at 6.126 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday" 77.75-77.77 (77.75-77.76). Call Money Rates: 05.25-07.10 percent (previous 05.25-07.50 percent). 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. Inter bank 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).
In the fourth Asian trade, 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.
In the final Asian trade, the US dollar stepped back from a two-week high against a basket of developed world currencies but is seen on solid footing on expectations of an eventual end to super-easy US monetary policy. The dollar was trading against the Indian rupee at Rs 59.57, the greenback was 3.2050 in terms of the Malaysian ringgit and the US currency was at 6.1307 against the Chinese yuan.