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KARACHI, July 17: The US dollar lost 35 paisa or more than 0.5 per cent against the rupee in the kerb market on Wednesday in line with its fall against the euro and other major currencies in the international markets.
The Forex Association of Pakistan said the US dollar closed at Rs59.25/Rs59.35 on Wednesday down 35 paisa from the Tuesday close of Rs59.60/ Rs59.70. At this level the greenback became cheaper in the kerb market as compared to inter-bank market where it closed unchanged at Rs59.67/Rs59.69 for ready buying and selling on Wednesday.
Money changers said the dollar fell on panic selling by most of the investors who were over-awed by the ongoing rise of the euro.
“People made a beeline to sell dollars and buy euros,” said a leading money changer adding that on Wednesday he sold 50,000 euros adding that normally he sells 25,000-30,000 euros daily.
But president of Forex Association of Pakistan Malik Bostan warned that those buying euro at a high price would suffer loss in future as “there is no major buying of euro by the investors.”
“Overseas Pakistanis coming from eurozone are selling euro and the currency is being exported. There is no major local buying of euro,” he said.
Since July 1 the dollar has lost 90 paisa or 1.5 per cent of its value against the rupee in the kerb market here. The US unit has been on the fall in line with its decline in international markets amidst a flurry of reports about corporate frauds in the US.
INTER-BANK MARKET: In the inter-bank market the dollar closed unchanged at Rs59.67/Rs59.69 for ready buying and selling on Wednesday.
Since July 1 the dollar has lost 36 paisa or 0.6pc of its value against the rupee in the inter-bank market. Senior bankers say the greenback has started falling as the State Bank has stopped defending it at Rs60. They say the central bank now seems ready to defend it at Rs59.40-Rs59.50 meaning that the SBP would make aggressive buying of dollars to keep it from falling further if it falls to this level.
EURO: The euro managed to keep its head above Rs60 level for the second consecutive day in both the inter-bank and open currency market.
Forex Association of Pakistan said the euro closed at Rs60.00/ Rs60.20 for spot buying and selling on Wednesday up from Rs59.90/ Rs60.10 on Tuesday. But independent money changers said the euro was trading at Rs60.10/Rs60.30.
In the inter-bank market the euro closed at Rs60.29/Rs60.31 for ready buying and selling on Wednesday up 23 paisa from the Tuesday close of Rs60.06/ Rs60.08.
Bankers said the rise of the euro here reflected the gains it made against the dollar in the world currency markets.
