Commenting on the rate cut, currency analysts said the move would help in reviving the business activity in the country, which was coming down due to lack of basic facilities. The private sector was happy but on the other hand, they said, the market observed profit-taking as a result of panic buying of dollars. Today the dollar was higher and if it continued upward march on Friday, it might gain further next week against the dollar, it added. Profit seekers were busy in forward buying of dollars and it was another major reason behind the dollar's surge after payments requirements, they said.
Business community has termed 50-basis point cut in the mark-up by the State Bank of Pakistan as insufficient and demanded further reduction to bring it down to eight percent. They said 50-basis point cut in mark-up was meagre and half-hearted attempt to bring the economy on track. They further said the central bank should reduce the mark-up rate to eight percent and the Bank should take some bold step and curtail it to at least 150 basis points. The decrease will hardly improve the local investment scenario.
INTER-BANK MARKET RATES: The rupee continued its slide in relation to the dollar, losing 25 paisa for buying at 97.65 and the national currency also lost 28 paisa for selling at 97.70, they said.
OPEN MARKET RATES: The rupee, in sympathy, adopted the same path, falling 35 paisa against the dollar for buying and selling at 98.35 and 98.55, they said. The rupee also drifted versus the euro, shedding 90 paisa for buying and selling at Rs 128.20 and Rs 129.20, they said. In the final Asian trade, the yen slipped to nine-month lows on Friday as Japan looks set to get a prime minister keen to push for more money printing by the central bank to stimulate the moribund economy.
Japanese media reported that conservative Liberal Democratic Party (LDP) is set for a stunning victory in elections on Sunday, cementing speculation that LDP leader Shinzo Abe will be in a strong position to push for bold monetary easing. The dollar was trading against the Indian rupee at Rs 54.46, versus the Malaysian ringgit, the US currency was at 3.0548 and the greenback was at 6.2376 versus the Chinese yuan.
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Open Buying Rs 98.35
Open Selling Rs 98.55
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday.
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Bid Rate Rs 97.65
Offer Rate Rs 97.70
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RUPEE IN LAHORE: The Pak rupee remained under pressure and was further declined against the greenback and the British pound on the local currency market on Friday.
According to the currency dealers, the dollar resumed trading on a healthy sign and kept on moving up throughout the day to touch the level of Rs 99. The dollar was closed further higher at Rs 98.5 and Rs 99 as its buying and selling rates against Rs 97.9 and Rs 98.3 of Thursday, respectively.
Likewise, the rupee also could not out of the ongoing pressure and was depreciated against the pound sterling. The pound's buying and selling rates were improved from the overnight closing of Rs 157 and Rs 157.5 to Rs 157.7 and Rs 159, respectively, the dealers added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar on the open currency markets of Islamabad and Rawalpindi here on Friday. The dollar opened at Rs 97.3 (buying) and Rs 97.4 (selling) against 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).