KARACHI - Building up speculative sentiments and volatility in the local capital market by the manipulators, the dollar-rupee exchange rate parity appears on its way to breach the barrier of Rs 80 in next few days, forex market sources told The Nation on Thursday. Sources said currently, the currency market is facing a fresh wave of demand-pressure of the US dollar in the open market for the number of various developments such as imposition of 100-percent L/C margin condition on the import of non-essential items, buying of the US currency by the people traveling to Saudi Arabia to perform "Umrah" during Ramazan and obviously, as a result of record capital outflow from the country.   Since Wednesday, the rupee had started to shed its value against the US dollar whereby the US $ crossed the barrier of 77 and touched 78 in the open market. This trend continued on Thursday as the dollar had been traded at Rs 77 in the open market. However, the dollar reached near Rs 77 in the interbank dealings on the same day amid increase in the demand US currency in the primary market. The decline in the demand of dollar observed on Thursday as the rupee posted 0.10 paisa versus the US$ in the open market dealings.   The American dollar started off new day's trading at Rs.76.70, posted gains and was changing hands at Rs.76.80 at close of markets on Thursday. The US currency commenced new day's trading at Rs.76.60, shed grounds and was trading at Rs.76.50 at close of markets on Thursday. Indicating depleting foreign exchange scenario, it is very clear to forecast where the economy is heading? The latest foreign exchange position of the country is making a negative macroeconomic outlook which would definitely lead towards the depreciation of the Pak currency against the US dollar. SBP recent break-up on foreign exchange showed that by September 04, 2008, the total liquid foreign exchange reserves of the country amounted at 9,129.6 million dollars. Reserves held by the SBP stood at $5,759.6 million while to date, the commercial banks have had $3,370.0 million stock of the foreign reserves.       The condition of imposing 100-percent "Letter of Credit" (LC) margin on 334 non-essential and luxury items by the State Bank had been projecting to boost  the dollar-rupee exchange rate parity as the importers would have to arrange the foreign exchange from the open market. Analysts are of the view that by this decision, the growth in import bill can be mitigated, but this factor would augment demand of the US dollars.    If the dollar-rupee parity surges, the cost of imports and production would also increase, leading to more inflation and more financial burden on the consumers, said experts. Worth noting is that the dollar-rupee exchange rate had hit the highest mark in the backdrop of SBP's decision to stop providing forex to meet oil imports which increased demand of dollars in the open market and paved way for its manipulation. Since July the value of rupee has declined by 12 percent versus the US currency. This sharp depreciation has been due for the number of reasons such as political chaos, recessionary tendency in the equity market and weak macroeconomic variables. Before Ramazan, analysts were projecting that the mechanism of price-level between the two trading currencies would suffer a minor slow down during the first two weeks of this month amid new demand-pressure of the US$ in the money market. Currency analysts see there is a bubble in the capital market which can finally burst any time and the dollar might be reaching at Rs 80 at any upcoming session of forex trading. Analysts do term "uncertainty" being observed in the forex a market is very much attributed to so-called speculative behaviour rather than liquidity mechanism. Despite facing weaknesses in the supply side due to slow growth in financial inflows,   absence of any consolidated economic strategy coupled with lack of viable financial agenda to tackle the prevalent economic issues is making our capital markets are more volatile.