20000117

Five paisa fall

in kerb

last week

SEEMA SHAFI

KARACHI: The rupee failed to maintain its month-long upward journey against the dollar in kerb last week, showing five paisa decline at Rs 53.95 and Rs 54.

Eperts attributed the fall in the rupee to rising demand of the dollar from overseas Pakistanis, who have started leaving their homeland after spending Eid-ul-Fitr holidays with their kith and kin.

The second key factor behind the declining of the rupee could be a sharp fall in the banks deposits during the last six months, they observed.

Commenting on the recent government's measures to bring the economy on track, currency monitors said that the government was expecting a saving of Rs 10 billion through the new decision of cutting down interest of commercial banks by two percent. It was observed that in the past such steps, helped the economy as well as local currency to maintain its prevailing levels versus the dollar.

The dealers, however, were expecting that the rupee may show further weakeness in relation to the dollar in the near future in the absence of motivating factors.

KERB MARKET: On Monday, the rupee did not show any change versus the greenback as all the trading centres remained closed in observence of Eid-ul-Fitr holidays.

On Tuesday, the rupee opened the week on anegative note, depicting five paisa decline in relation to the dollar at Rs 53.90 and Rs 53.95. Money changers said that accelerating demand for the greenback pushed the rupee lower amid improved activity.

On Wednesday, the rupee extended its overnight slide, losing five paisa against the dollar at Rs 53.95 and Rs 54 for buying and selling, respectively.

On Thursday, the rupee continued its overnight weakness and shed five paisa more versus the dollar at Rs 54 and Rs 54.05 amid modest activity.

On Friday, the rupee picked up two paisa in relation to the dollar at Rs 53.98 and Rs 54.03 for buying and selling, respectively. At the weekend, the rupee gained three paisa more against the dollar at Rs 53.95 and Rs 54 in modest business.

INTER-BANK RATES: On January 11, the rupee maintained its week-end level of Rs 51.90 for both the buying and selling. On January 12, the rupee shrugged off its easier trend ans shed one paisa on the buying side at Rs 51.89, while no change was witnessed in its selling rate of Rs 51.90.

On January 13, the rupee did not show any change for both the buying and selling values versus the greenback. On January 14, the rupee shed one paisa for buying at Rs 51.90 and it did not show any change for selling at the same level in sluggish business. On January 15, the rupee maintained its overnight levels

against the dollar in low activity.