KARACHI, June 23: The rupee lost nine paisa more against the US dollar in the inter-bank market on Wednesday coming down to 58.11 a dollar from 58.02 on Monday. Senior bankers said the local currency weakened on increased dollar buying by banks on behalf of their customers.
They said the SBP did not intervene to stop the slide of the rupee but it kept a strong vigil on the banks to check moves for speculating against the rupee. With the latest fall in its value the rupee has lost 64 paisa or 1.1 per cent of its value against the dollar in less than two months.
At end-April the rupee had closed at 57.47 a dollar 0.6 per cent up in ten months to April. But as the trade deficit widened and corporates made heavy dollar buying both for regular external debt servicing as well as for prepayment of foreign loans the rupee began to fall.
The cumulative trade deficit in April and May 2004 stood at $1.088 billion. In June also the trade deficit is likely to remain high making the dollar dearer. So far during this fiscal year the rupee has lost 30 paisa or more than half a percentage point of its value against the dollar coming down to 58.11 on June 23, 2004 from 57.81 on June 30, 2003. Bankers say the local currency may throw off a few paisa more against the dollar at the end of this fiscal year on June 30.
OPEN MARKET: In the open market the rupee closed at 58.55 for spot selling by money changers on Wednesday showing an eight paisa fall overnight. Currency dealers said the rupee weakened in response to the developments in the inter-bank market.
The rupee has lost 50 paisa against the dollar in the open market in less than two months coming down to 58.55 on June 23 from 58.05 on April 30 reflecting its decline in the inter-bank market.
