THE RUPEE: closes to touch 98 versus dollar

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The rupee hit the new record low at 97.65 versus the dollar in currency market on Thursday, dealers said, adding the national currency, inch by inch is heading to cross the barrier of 98 in short span of time.

The rupee is losing its value versus the dollar rapidly in both the interbank and kerb market amid panic buying of dollar as no one is able to guess about certain level of the rupee in relation to the dollar, they said.

Where the slide of the rupee will stop, no one is in hand to predict about the matter in the absence of any restriction on the forward buying of the greenback, Malik Bostan, President of the Exchange Companies Association of Pakistan (ECAP) said. As Compressed Natural Gas (CNG) consumers are not sure about the timely availability of the same item just like that the dollar buyers were in grip of uncertainty due to continued rise in the dollar demand, which is causing rapid erosion in the value of the rupee versus the US currency with the passage of time, other dealers said.

Rising trend in remittances is not enough to arrest dollar's surge, because in expectations of better profits, the exporters were reluctant to bring export earnings or remittances, some experts said. There is no supply of dollars just demand, how we can suppose a halt in rupee's weakness? they questioned.

INTERBANK MARKET RATES: The rupee extended its fall against the dollar, losing 16 paisa for buying 96.60 and it shed 17 paisa for selling at 96.65, they said.

OPEN MARKET RATES: The rupee dropped 20 paisa in relation to the dollar for buying and selling at 97.45 and 97.65, they said. The national currency also lost 40 paisa against the euro for buying and selling at Rs 125.00 and Rs 126.00, they said.

In the fourth Asian trade, the euro eased versus the dollar, but its losses were limited after comments from US policymakers rekindled hopes for a deal to avoid a sharp fiscal tightening that could hurt the global economy. "For the moment, the US fiscal cliff seems to be a dominant theme in the market," said Katsunori Kitakura, Associate General Manager of market-making at Sumitomo Mitsui Trust Bank.

The dollar was trading against the Indian rupee at Rs 55.45, the US currency was at 3.0525 in terms of the Malaysian ringgit and the greenback was at 6.2273 against the Chinese yuan. Interbank buy/sell rates for the taka against the dollar on Wednesday: 81.24-81.74 (previous 81.20-81.55). Call Money Rates: 06.00-08.00 percent (previous 05.80-08.50 percent).

Courtesy: Business Recorder

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