KARACHI, Sept 8: The rupee remained under pressure in the inter-bank market on Wednesday as pro-dollar sentiments prevailed even after a $100 million payment was made to a consortium of local and foreign banks by the Pak-Arab Refinery Co (Parco), on Tuesday.

Treasurers of more than half a dozen local and foreign banks said the rupee closed around 58.90 a US dollar, up slightly from 58.88 on Tuesday. But the State Bank reported the closing rate at 58.83. No official from the SBP was available to explain why the central bank showed a lower-than-actual closing of the rupee-dollar parity.

The SBP closing rates generally reflect the actual trend in the exchange rates towards the end of the day but in the recent past these rates have differed from the rates prevailing in the market at the day-end.

Senior bankers say the central bank must ensure it that the closing rates compiled and flashed by it are exactly the rates prevailing at the end of the day. Brokers co-ordinating in exchange rate compilation also say that the SBP's closing rate normally reflects the actual movements in exchange rates but sometimes they do differ from the prevailing rates in the market.

The rupee had closed at 58.88 on Tuesday after breaching the 58.90 level on Tuesday as Parco paid a consortium of banks $100 million in third instalment of a $350 million rupee-dollar swap.

On Monday, the rupee had closed at 58.82. The company had to roll over $100 million second instalment of the swap in August on the insistence of the SBP that feared that the outright payment of such a big amount of foreign exchange would create volatility in the market.

Parco had entered into $350 million rupee-dollar swap with four major local banks and a foreign bank to retire ahead of schedule a Japanese loan it had obtained some years ago for constructing an oil refinery.

Whereas, the official sources say the State Bank sold $100 million to a large local bank for onward selling to Parco on Tuesday, market sources say the central bank did not arrange the entire amount in cash.

"The central bank did buy ready dollars from the market through rupee-dollar swaps with some banks," said a senior banker meaning that the SBP raised ready dollars from some banks against rupees under the agreement to sell these dollars back to them after a specific period. If this has been the case, the central bank will have to arrange dollars for such banks on maturity of swaps during next few months.

OPEN MARKET: The rupee lost 10 paisa to close at 59.60 for spot selling by money changers in the open currency market on Wednesday. On Tuesday also, the rupee had shed 15 paisa. Thus, the local currency lost 25 paisa to a US dollar in just two days coming down to 59.60 a dollar on Wednesday from 59.35 on Monday.