THE RUPEE: PKR weakens

The rupee failed to maintain its firmness against the dollar on the local currency market on Monday, dealers said. The rupee lost Rs 1.80 in relation to the dollar for buying and selling at Rs 103.90 and Rs 103.95, they said.

INTERBANK MARKET RATES: OPEN MARKET RATES: In sympathy with the interbank market track, the rupee followed same pattern, losing around versus the dollar for buying and selling at Rs 104.60 and Rs 104.90, they said.

The rupee also depreciated by Rs 1.40 versus the euro for buying and selling at Rs 118.60 and Rs 119.10, they said. Some experts attributed the fall in the rupee’s value to panic buying and artificial shortage of dollar. Next direction of trade of the rupee will be appeared shortly, they said.

In the first Asian trade, the euro hit a 6 1/2-month high and the yen hit a 1 1/2-month high against the dollar on Monday as investors dumped risk assets and flocked to currencies often seen as safe havens. The euro and the yen rose also as investors unwound their short positions. “Markets are panicking. Things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable,” said Takako Masai, the head of research at Shinsei Bank in Tokyo. Worries about a slowing Chinese economy, and in turn global growth, flared up last Friday after a survey showed a further deterioration in China’s manufacturing activity.

This was compounded by a steep drop in the Chinese share market, which fell more than 7 percent on Monday. The euro jumped to as high as $1.1496, its highest level since February. It last stood at $1.1480, up 0.9 percent on the day. The dollar slid as far as 120.73 yen, down more than a full yen from 121.96 late in New York on Friday, reaching a low last seen on July 9.

The dollar was trading against the Indian rupee at Rs 66.50,, the greenback was at 4.2240 versus the Malaysian ringgit and the US currency was at 6.3968 in relation to the Chinese yuan. Interbank buy/sell rates for the taka against the dollar on Monday. 77.80-77.80 (previous 77.80-77.80). Call Money Rates: 05.30-6.50 percent (Previous 05.30-06.50 percent).

Open Bid       Rs.104.60
Open Offer     Rs.104.90

Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday.

Bid Rate       Rs.103.90
Offer Rate     Rs.103.95

RUPEE IN LAHORE: The Pak rupee came under pressure against the dollar and the pound sterling in the local currency market on Monday. Because of rising demand for the dollar, the rupee lost 50 paisas against the former for buying and selling at Rs 104.30 and Rs 104.70 compared with the last week closing of Rs 103.80 and Rs 104.20, respectively.

The rupee remained weak and slide down from the last Saturday closing of Rs 161.80 and Rs 162.30 to 162.10 and Rs 162.50 on buying and selling counter, respectively.

RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar witnessed a major increase of Rs 2 against the local currency at the open currency markets of Islamabad and Rawalpindi here on Monday. The dollar opened at Rs 104 (buying) and Rs 104.25 (selling) against Rs 102 (buying) and Rs 102.20 (selling) last week’s rate.

It did not observe further change in the second session and closed at Rs 104 (buying) and Rs 104.25 (selling). Pound Sterling opened at Rs 161 (buying) and Rs 161.50 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 161 (buying) and Rs 161.50 (selling).

Recorder Report