Rupee low against dollar

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Karachi The rupee dipped to an all-time low against the dollar in the currency market on Wednesday as traders feared further erosion in the foreign exchange reserves amid hefty foreign debt repayments, dealers said.

The rupee suffered a decline in the interbank foreign exchange market, pushing the dollar to the new high, despite ample supplies, they added. The rupee fell by 10 paisas to 98.57 against the dollar from the previous closing of 98.47.

The market started the day in an aggressive mood. The rupee was exchanged at 98.60 against the dollar during the first trading session due to high demand for the dollars, the dealers said. In the open market, the rupee extended some gains against the dollar. It was traded at 99.65 at the buying counter and at 99.90 at the selling counter.

Currency experts said that Pakistan will need balance of payments support from the International Monetary Fund (IMF) to cushion its forex reserves position.

Highlighting the challenges for the new government, Sayem Ali, economist at Standard Chartered Bank, said that in the absence of significant reforms in the first 100 days, the market focus will likely return to the unsustainable fiscal deficit and dwindling forex reserves of the country.

Courtesy: The News

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