Dollar-rupee parity improves by Rs1.25

KARACHI - Like stock market, the dollar-rupee parity also took a U-turn on Wednesday and improved by Rs 1.25, closing at Rs 75. During the past two days the rupee gained a substantial value against the US dollar after the resignation of President Pervez Musharraf. But this gain in the value of rupee proved short-lived on the third day, Wednesday, and the US currency bounced back with full vigour, giving a shock to the analysts and general public who were expected further improvement in the value of Pak-rupee versus dollar. On Tuesday the dollar-rupee exchange rate closed at Rs 73.74 for buying and Rs 74 for selling in the open market. However on Wednesday the exchange rate improved to Rs 75 amid reports of lack of understanding between the coalition partners over the reinstatement of the judges, dealers said. The fluctuations in the exchange rate in the open market are being engineered by the speculators and manipulators who have become the custodians of the domestic financial markets including the bourses. On Monday after the announcement of the resignation by President Pervez Musharraf, the dollar suffered a blow against rupee in the open market. The new technical trend being practiced in the stock and forex markets is beyond economic variables, lacking any genuine currency exchange sense. Our financial markets are being operated by some pseudo investors who are free to breach forex market regulations without having any fear of accountability.      It is important to note here that, opting exchange rate adjustments towards depreciating rupee against dollar last week, the central bank had also advised the commercial banks to ensure repatriation of overdue export proceeds of approximately $200 - $220 million within the stipulated period of 180 days but experts see given the new political chaos that had been griped the country after the then President quit, the SBP directive would materialize partially and the financial markets would remain volatile and unpredictable.    It has been reported that the rupee might cross the barrier of 70 as it easily had breached an important mark of 69. due to higher demand for dollars in both interbank and the open market  respectively on Thursday &Friday.

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