New low: Rupee falls 76 paisa in a day

KARACHI: The rupee continued to reach new lows against the dollar. The rupee on Tuesday closed at a record low of 92.90/95, with sustained pressure on the currency because of increased import payments, especially for oil. The rupee had closed at 92.14/19 on Monday, a record low at the time. The decline in the rupee’s value started in midday trade on Tuesday, which continued until the closing of markets in evening, dealers said.  Dealers say the continued pressure is owing to different reasons like oil payments, tense Pakistan-US relations and dollar demand for upcoming Hajj season in open market. Chairman Exchange Companies Association of Pakistan Malik Bostan informed that the rupee closed on 92.90/93.00 on Tuesday, up at least 50 paisa if compared to the bank dealings on Monday.  Overnight rates in the interbank market rose to 11.50 per cent, from 10.75 per cent on Monday, because of decreased liquidity.

Published in The Express Tribune, May 30^th, 2012.