Third Consecutive Day: Rupee at new lows against dollar
The rupee traded at 88.65/73 to the dollar, compared with Tuesday’s close of 88.25/30.
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 1st, 2011.
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 1st, 2011.