Third Consecutive Day: Rupee at new lows against dollar

KARACHI: The rupee’s slide continued for a third day on Wednesday, with increased import payments, negative sentiment about regional currencies and a bleak outlook for the country’s economy driving it to a record low of 88.73 to the dollar. “There was an oil payment of about $50 million which has added to the pressure on the rupee,” said a currency dealer. The rupee traded at 88.65/73 to the dollar, compared with Tuesday’s close of 88.25/30. The rupee has lost 3.52% this year. “If the relationship does deteriorate further, look for increased selling from foreign portfolio investors ... with the currency also likely to accelerate its recent slide towards a parity of 90 rupees to the dollar,” said Khalid Iqbal Siddiqui, Director at Invest and Finance Securities Ltd.

Published in The Express Tribune, December 1^st, 2011.