KARACHI: The cotton market remained dull on Tuesday as buyers were still reluctant to enter into deals despite withdrawal of five per cent duty exemption on yarn imports.

Floor brokers said appreciation in the rupee’s value has shaken up export trade and markets are still adjusting to the new dollar-rupee parity.

Consequently, there is a temporary pause which will end in coming days once new export orders are booked on revalued rupee rate.

They added that since leading spinners have already built upon their cotton inventories for the entire season, there is little demand. Barring a few small deals originating from millers and some exporters, trading activity remained lacklustre.

The New York cotton market also remained under pressure where all future contracts except December 2014 closed with fresh falls.

The Karachi Cotton Association (KCA) spot rates were unchanged and trading on ready counter was extremely slow.

The following deals were reported to have changed hand on ready counter: 600 bales, Shujabad, at Rs6,400; 600 bales, Rahimyar Khan, at Rs6,000; and 400 bales, Sadiqabad, at Rs6,300.