Currency: Rupee hits new low again

KARACHI: The rupee hit a record low of 87.59 to the dollar on Friday, on increased import payments and negative sentiment surrounding the country’s economic outlook, but recovered slightly to close at 87.49/54 compared with Thursday’s close of 87.42/48. Dealers expect pressure to remain on the currency in the short to medium term. “The rupee was traded at 87.59 per dollar, but there is still some support at 87.50,” said a dealer at a foreign bank. The rupee hit a previous record intra-day low of 87.53 on Thursday. Though there were some inflows, in particular some remittances from Pakistanis working overseas, dealers said negative sentiment about Pakistan’s economy was affecting the local unit.

Published in The Express Tribune, September 10^th,  2011.