Fourth consecutive session: Rupee falls to new low against dollar

KARACHI: Import payments and gloomy sentiment about the country’s economic outlook forced the rupee to a fresh record low on Monday for the fourth consecutive trading session. The rupee closed at 87.00/07 to the dollar, down from the previous record low of 86.95/99 on Saturday. Dealers said that they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments. “The rupee was traded as high as 87.10 against the dollar,” said a dealer at a local bank while adding that there were some payments of about $40 to $60 million. Dealers also said there were fears of portfolio outflows, which was driving down the sentiment. Foreign investors sold shares worth $5.63 million last week.

Published in The Express Tribune, August 23^rd,  2011.