Rupee falls 80 paisa against dollar

Published March 12, 2020
Cumulatively, the dollar has increased by Rs4.35, or 2.82pc, from its value of Rs154.25 on Friday. — AFP/File
Cumulatively, the dollar has increased by Rs4.35, or 2.82pc, from its value of Rs154.25 on Friday. — AFP/File

KARACHI: The local currency remained under pressure on Wednesday losing another 80 paisa, or 0.51 per cent, against the US dollar which traded at Rs158.60 in the interbank market. After staying steady for around six months, the greenback began rising on Monday and posted a sharp jump of Rs3.65 (or 2.36pc) to reach Rs157.9 by the day’s end.

Cumulatively, the dollar has increased by Rs4.35, or 2.82pc, from its value of Rs154.25 on Friday.

The open market also noticed an upward movement as the dollar rose by Re1 to Rs158 during intraday trade.

Much of this change can be attributed to foreigners unloading their positions in the equity and debt markets.

“International investors have been selling their stakes in the stock exchange, which has created demand for dollars. The T-bills, which have attracted hot money inflows worth $3.1 billion, are also set to mature in less than a week,” said former general secretary of Exchange Companies of Pakistan, Zafar Paracha. “The rupee shouldn’t have lost value as the dollar itself has declined against the euro but the coronavirus outbreak has induced part panic, part speculation among investors,” he added.

Forex Association of Pakistan President Malik Bostan put weight behind this explanation and said: “With the maturity of government papers just around the corner, many foreigners are liquidating their positions instead of reinvesting, which has created demand for dollars in the interbank market.”

Published in Dawn, March 12th, 2020

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

PAKISTAN has now registered 50 polio cases this year. We all saw it coming and yet there was nothing we could do to...
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...
Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...