New Low: Rupee hits rock-bottom against dollar
Analysts say concerns about the country’s economic stability are adding to the pressure on the rupee.
KARACHI:
The rupee fell sharply on Monday to hit a record low of 91.28 to the dollar, but recovered most of the losses before close on suspected central bank intervention, dealers said. The rupee ended at 90.75/80 to the dollar, down from Friday’s close of 90.60/68. This is the rupee’s weakest ever closing, though it was still higher than Monday’s intra-day low. Dealers said Monday’s sharp fall in the rupee was driven by higher dollar demand from importers and soft supplies – a trend that is likely to continue in near-term. “There were payments of about $100 million today, and since there were not enough dollar supplies, the rupee fell sharply,” said a dealer at a local bank. Analysts say concerns about the country’s economic stability, especially a weakening current account, are adding to the pressure on the rupee.
Published in The Express Tribune, January 10th, 2012.
The rupee fell sharply on Monday to hit a record low of 91.28 to the dollar, but recovered most of the losses before close on suspected central bank intervention, dealers said. The rupee ended at 90.75/80 to the dollar, down from Friday’s close of 90.60/68. This is the rupee’s weakest ever closing, though it was still higher than Monday’s intra-day low. Dealers said Monday’s sharp fall in the rupee was driven by higher dollar demand from importers and soft supplies – a trend that is likely to continue in near-term. “There were payments of about $100 million today, and since there were not enough dollar supplies, the rupee fell sharply,” said a dealer at a local bank. Analysts say concerns about the country’s economic stability, especially a weakening current account, are adding to the pressure on the rupee.
Published in The Express Tribune, January 10th, 2012.