May 22, 2008	Thursday	Jamadi-ul-Awwal 16, 1429

KARACHI, May 21: The US dollar in open market breaks the barrier of Rs70 on Wednesday while the inter-bank market could hardly hold it back to hit the psychological boundary.

Currency dealers in the open market said that demand was still higher and the influence of inter-bank market is building pressure on the rupee to shed more weight against the greenback.

“First we should look at the inter-bank market, which is the real currency market of millions of dollars. The dollar was close to hit Rs70 in the inter-bank market,” said Malik Bostan, president Forex Association of Pakistan.

The dollar hit Rs70.40 and remained at Rs70.30 in the open market.

Mr Bostan said it was not important that the dollar crossed Rs70 in the open market as it could quickly go back to its old position. It is the inter-bank market, which should not be allowed to cross this barrier, he added.

The currency dealers in the inter-bank market said the dollar touched Rs69.95 and settled at Rs69.70 before close of the market.

The battle to hold the rupee from free fall against the dollar continued on Wednesday and despite favourable situation, the dollar was not allowed to touch Rs70.

“The State Bank of Pakistan intervened in the market and pulled back the slipping rupee to some distance from the boundary line of Rs70,” said Atif Ali, a currency dealer.

He said the market would not become stable until the dollar comes into the market and the reports about inflows alone are not enough to stop the greenback from moving ahead.