KARACHI, July 6: The rupee has shed seven paisa against the US dollar for ready buying and selling in the inter-bank market in the first week of the new fiscal year.
Senior bankers said the rupee fell to 60.12/60.14 to a dollar on Saturday down seven paisa over the last week’s close of 60.05/60.07. They attributed the modest fall in the rupee value to increased dollar demand for payment of oil import bills and for clearing the corporate sector debt.
“Banks have been buying dollars on behalf of Hubco, which has to make some $50 million debt payment next week,” said treasurer of a foreign bank.
He said dollar buying for Hubco continued also on Saturday and may not be over until the day of the debt payment that falls on July 10.
The rupee went up by 6.25 per cent in the fiscal year July/June 2001/02 mainly due to increased inflow of foreign exchange after 9/11.
Senior bankers say the local currency may remain firm also in the first quarter of this fiscal year on the back of ever-rising foreign exchange reserves that are now close to $6.3 billion.
KERB MARKET: In the open currency market the rupee remained firm at 60.15/60.20 to a dollar for spot buying and selling in the first week of the new fiscal year.
Money changers said there was no unusual demand for dollar in the market.
Whereas the rupee held firm against the dollar this week in the kerb market, it gained some value against the British pound sterling. The pound shed 25 paisa against the rupee to close at Rs91.40/ Rs91.60 for spot buying and selling on Saturday against the last week’s close of Rs91.65/ Rs91.85. Money changers said the euro — the single currency of 12 European nations — also shed 95 paisa against the rupee to close at Rs58.40/Rs58.60 for spot buying and selling on Saturday. A week earlier the euro was trading at Rs59.35/ Rs59.55. Money changers said both currencies may fall further with only 25 days left in the summer vacations adding that the two currencies were in high demand by those travelling to the UK or the rest of the Europe to spend the summer vacations of their children.