12 May 2004	Wednesday	21 Rabi-ul-Awwal 1425

KARACHI, May 11: The rupee lost six paisa more to a dollar in the inter-bank market on renewed buying of greenbacks by some banks. It closed at 57.68 a dollar on Tuesday down six paisa from 57.62 a dollar on Monday.

This brought the total loss the rupee suffered in two days to 14 paisa. On Monday the local currency had lost eight paisa to a dollar also on increased buying of foreign exchange by the banks.

Senior bankers say they are buying dollars to meet the needs of their customers as well as to cover their short positions. Sources close to State Bank said SBP officials made inquiries on telephone from the banks aggressively buying dollars from the market.

One of the sources said the central bank also sold a couple of millions of dollar to keep the US currency from rising further. Pakistan has paid $1.1bn expensive Asian Development Bank loans ahead of schedule and plans to make more pre-payments.

Corporates are following suit taking advantage of the exchange rate stability. On the other hand widening trade deficit and falling workers remittances or foreign exchange sent back home by overseas Pakistanis have lowered the supply of dollars in the market. Hence the pressure on rupee strength.