After remaining stable, rupee starts losing value again

Published: November 6, 2013
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Dealers say the government needs to reassure investors and take initiatives to stabilise the currency. PHOTO: FILE

Dealers say the government needs to reassure investors and take initiatives to stabilise the currency. PHOTO: FILE

KARACHI: Pakistani rupee weakened against the dollar in interbank dealings on Tuesday and closed at 107.35, a fall of 35 paisa compared to Monday’s close of 107/107.10.

According to currency dealers, the rupee is declining continuously against the greenback and on an average it has dropped 10 to 15 paisa daily in the last few days.

Similarly, in the open market, the rupee fell to 107.70/80 against 107.30/40 a day earlier.

After remaining relatively stable in October, the rupee has started shedding value again. It stood relatively firm last month when the United States released the Coalition Support Fund (CSF), dealers say.

Continuous improvement in remittances from overseas Pakistanis has also provided significant support to the currency in previous months.

“The rupee will weaken further in coming weeks and may come down to 110 to a dollar as almost all economic indicators have shown downward trend in the last few months,” a leading currency dealer said.

Dealers say the government needs to reassure investors and take initiatives to stabilise the currency because no good news is coming from the current economic situation of the country.

Pakistan’s foreign currency reserves have been persistently under pressure primarily because of continuous repayment of loans to the International Monetary Fund. Consequently, the rupee dropped about 5% in the last fiscal year.

Published in The Express Tribune, November 6th, 2013.

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Reader Comments (4)

  • Hedgefunder
    Nov 6, 2013 - 2:23AM

    What did you expect ? How long was this tin pot currency likely to remain stable ?
    This is only the beginning of very bad quarter !

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  • unbelievable
    Nov 6, 2013 - 2:38AM

    Overspending combined with threatening USA/NATO is going to impact currency market – not rocket science.

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  • Yousaf
    Nov 6, 2013 - 3:11PM

    During the first reign of Nawaz Sharif the Foreign Currency accounts of all Pakistanis were Nationalized .Since then the rupee has been unstable …President Musharraf stabilized the Rupee during his years in office ..but with the arrival of Bhuttos and Sharifs we are again in trouble.

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  • usman786
    Nov 6, 2013 - 9:35PM

    In Uganda two months back I got uhx 2570. Now only uhx 2480 against dollar

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