May 06, 2008	Tuesday	Rabi-us-Sani 29, 1429

KARACHI, May 5: The rupee slipped further on Monday as it lost 70 paisa against the US dollar to reach Rs65.85, adding to the nervousness of importers.

The currency dealers said that the greenback shortage turned acute on high demand from the importers.

They said the dollar-rupee relation was no more predictable as the local currency had not been showing resilience.

“We are not sure if the State Bank has lost control over the exchange rate but it is the most difficult time for the country as well as the central bank,” said a banker.

He said the record trade deficit, highest-ever petroleum prices and an all-time high imports had threatened the continuity of economic growth.

Currency dealers said the rupee might lose more on Tuesday ‘as there is no hope that the State Bank will come to the rescue of melting local currency’.

The dealers said, however, there was no rush on their counters, they were charging Rs66.90 for a dollar.

“I assure you that the dollar is available and there is no panic buying in the open market as seen in the inter-bank,” said Malik Bostan, owner of a licensed exchange company.