Pakistan Rupee exchange rate at 73.85 to a dollar in ‘value tomorrow trade’

KARACHI (July 09 2008): The rupee slid 2.6 percent on Tuesday to close at a record low in a market worried about high inflation, burgeoning deficits and security. The currency closed at 72.85/90 to the dollar after falling as low as 73.04 rupees, when dealers suspected the central bank intervened to stop the rot.
However, in trade after the ready market closed, known as value tomorrow trade, dealers said the rupee traded at 73.85 to the dollar at around 10:00 GMT, for settlement on Wednesday.

The value tomorrow trade usually gives an indication on how the rupee will open the following day. The government has sought help from multi-lateral lenders and friendly governments to stave off the economic threats as the country tries to cope with soaring import costs.

Any news that loans had been approved could provide some relief to the rupee. Foreign currency reserves have dwindled to levels equivalent to less than three months worth of imports as the central bank sold dollars to help oil importers make payments.

There was also market speculation that the State Bank of Pakistan would raise interest rates in a policy review later this month to try to bring rising prices under control, dealers said.

“Fixing the problem is not easy since inflation is globally driven and for Pakistan it’s also a structural issue as it does not have a lot of exports,” said Matthew Wilson, an analyst at Morgan Stanley. The rupee has fallen 18.3 percent against the dollar this year as annual inflation has accelerated to a three-decade high above 19 percent and fiscal and current account deficits have widened, due largely to a soaring oil import bill.

“When the fundamentals are not strong enough, how will the rupee strengthen? It’s not easy and the outlook is quite bleak,” said a currency dealer. Dealers said the weakest the rupee traded at on Tuesday was 73.04 rupees. It closed at 71.00/05 on Monday.

In what analysts said could be a hint of further tightening, SBP governor Shamshad Akhtar said a number of developing and developed countries were pursuing tight monetary policies to contain inflation and to mitigate its impact on long-term growth.

Analysts fear political infighting is distracting the coalition’s attention from restoring economic stability, though a budget announced last month set targets to bring down an unsustainable fiscal deficit.

LAHORE: The rupee has kept falling, posting a record decline of Rs 2.00 – on the buying at Rs 72.50 and Rs 2.50 on the selling sides at Rs 73.50. The dollar on Tuesday gained to close at Rs 72.50 and Rs 73.50 against the overnight closing of Rs 70.50 and Rs 71.00 on the buying and selling sides.

The rupee also remained weak against the British pound, also crossing the Rs 141 level. The pound sterling finished higher at Rs 141.70 and Rs 142.70 against the Monday closing of Rs 137.10 and Rs 138.10 on the buying and selling counters. Moneychangers say the sharp decline in the rupee’s value is because of the increasing demand for the greenback, the euro, the pound sterling and other major currencies, for the import purpose plus bad public order.

ISLAMABAD: The dollar took a jump of Rs 2.50 against the Pak rupee at the currency markets of Islamabad and Rawalpindi on Tuesday. The dollar opened at Rs 73.50 (buying) and Rs 74 (selling) against last rate of Rs 71 (buying) and Rs 71.50 (selling). It did not observe further change in the evening session and closed at Rs 73.50 (buying) and Rs 74 (selling).

Pound sterling opened at Rs 142 (buying) and Rs 143 (selling) in the morning session. It did not observe further change in the second session and closed at Rs 142 (buying) and Rs 143 (selling).

=====================================================

Repo Rates (Yield p a)

—————————————————————–

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=====================================================

Overnight   11.00     11.90       11.50       11.90         11.58

1-Week      10.00     10.25       10.25       10.50         10.25

2-Week      10.00     10.40       10.30       10.60         10.33

1-Month     10.40     10.75       10.60       10.90         10.66

2-Months    11.25     11.40       11.40       11.50         11.39

3-Months    11.35     11.50       11.50       11.60         11.49

4-Months    11.40     11.50       11.50       11.65         11.51

5-Months    11.45     11.55       11.55       11.65         11.55

6-Months    11.45     11.60       11.55       11.70         11.58

9-Months    11.50     11.60       11.60       11.70         11.60

1-Year      11.50     11.65       11.60       11.80         11.64

=====================================================

Call Rates (Yield p a)

—————————————————————–

Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

=====================================================

Overnight   12.00     14.00       13.00       15.00         13.50

Week        11.00     12.50       11.50       13.00         12.00

Week        11.00     12.50       12.00       13.00         12.13

Month       12.00     13.50       13.00       14.00         13.13

Months      12.00     14.00       13.00       14.50         13.38

Months      12.50     14.50       13.50       15.00         13.88

Months      13.00     14.50       14.00       15.00         14.13

Months      13.50     14.50       14.00       15.50         14.38

Months      14.00     14.75       14.50       15.50         14.69

Months      14.25     15.00       14.75       16.00         15.00

Year        14.50     15.50       15.00       16.00         15.25

=====================================================

Source: Business Recorder, 9/7/2008

(Visited 15 times, 1 visits today)

2 Comments

  1. Inam-ul-haq

    hello sir/ i am student of M.Sc statistics and now i am in 4th semester in whcih a submission of research roport related to my subject is compulsary. i need a data of exchange rate of pakistan, india, bangladesh, srilanka of last 20 years till 2008. plz help me and send me data,

Leave a Reply