Musharraf's resignation gives blow to dollar

KARACHI - The US dollar suffered a major blow in the open market soon after the announcement of the resignation of President Pervez Musharraf. The Pak-rupee edged up by Rs 1.65 against the US dollar in the open market on Monday and closed at Rs 75. Last week the dollar-rupee parity had closed at Rs 76.35, after crossing Rs 77 on Friday.
During the past couple of months this was the first time that the US dollar had sustained a major blow at kerb and in the open market operations in Pakistan, dealers said.
The US currency was steadily gaining against rupee during the past few weeks amid speculations and manipulations by the market forces, they said. In June this year the dollar-rupee parity was below Rs 63, but it soared to over Rs 77 last week amid growing political chaos in the country.
Dealers said the rupee could further edge up against the US dollar as the clouds of political uncertainty have vanished after the resignation of controversial President of Pakistan.
On Monday the American currency commenced new day’s trading at Rs.76.45 paisa in the open market. But the dollar-rupee exchange rate dropped to Rs.75 at the close of markets on Monday due to the resignation of the President of Pakistan. Thus, rupee recovered Rs.1.64 paisa versus dollar in the open market.
Meanwhile, in the inter-bank operations the US dollar started new day’s trading at Rs.76, but it shed significant ground and closed at Rs.74/00. Rupee witnessed significant versus greenback in the interbank dealings.
According to a forex expert, for the last three months, the speculators cum manipulators had been making decisions using conjectures rather than analyzing currency market technical factors and economic fundamentals.