The importers are unnerved as foreign reserves were diminishing with the passage of time in the absence of expectations for any improvement in inflows, remittances and exports earnings are not enough to narrow the gap in the Balance of Payment, they said. On the one hand, it is anticipated that the government has a remedy to enforce more taxes to ease dollar buying pressure that may help in demand and supply position.
Donor countries are interested in imposition of new taxes, so that the country's economic managers will tackle the challenges boldly, they said. On the other hand, the government is interested in bringing the interest rate in single digit, as it supposed this move will help in reviving the industrial and business activities related to the economic sector but some economists close to the banking sector said the move will push up inflation rate in the country, they added.
Some of them said that "we have to wait till the end of the month, to see more fluctuation in the rupee versus the dollar," but it seems that the rupee may not fall sharply after crossing this barrier, they added.
INTERBANK MARKET RATES: The rupee crossed an important mark of 97, after shedding 35 paisa against the dollar for buying and selling at 97.25 and 97.30, they said.
OPEN MARKET RATES: The rupee dropped by 15 paisa in terms of the dollar for buying and selling at 97.55 and 97.75, they said.
The rupee also shed 50 paisa versus the euro for buying and selling at Rs 125.70 and Rs 126.70, they said. In the second Asian trade, the euro hovered above two-week lows on Tuesday as nerves calmed over Italy's latest political turmoil for now and as prospects of more stimuli from the Federal Reserve pinned down the dollar.
Expectations that the Fed will announce fresh easing steps on Wednesday also lifted high-yielding currencies against the dollar, boosting the Canadian dollar to a two-month high and the New Zealand dollar to a nine-month high.
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Open Buying Rs 97.55
Open Selling Rs 97.75
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday.
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Bid Rate Rs 97.25
Offer Rate Rs 97.30
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RUPEE IN LAHORE: The Pak rupee maintained downward slide for the second day and lost 20-paisa on buying side at Rs 97.6 and 15-paisa on selling side at Rs 97.85 in relation to the greenback on the local currency market on Tuesday.
According to the currency dealers, the dollar was opened on a healthy sign and witnessed fresh demand that helped its appreciation against the national currency. At the end of trading, the dollar was closed at Rs 97.6 and Rs 97.85 as its buying and selling rates respectively against Rs 97.4 and Rs 97.7 of Monday.
Similarly, the rupee failed to continue rising trend and was depreciated against the British pound. The pound's buying and selling rates were improved from the overnight closing of Rs 154.7 and Rs 155.5 to Rs 155.8 and Rs 156.3, respectively, the dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee showed an improvement of Re 1 against the dollar on the open currency markets of Islamabad and Rawalpindi here on Tuesday.
The dollar opened at Rs 97.3 (buying) and Rs 97.4 (selling) against overnight value of Rs 96.3 (buying) and Rs 96.4 (selling) against the same last rate. It did not observe further change in the evening session and closed at Rs 97.3 (buying) and Rs 97.4 (selling).
Pound Sterling opened at Rs 155.5 (buying) and Rs 156.5 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 155.5 (buying) and Rs 156.5 (selling).