Dollar crosses Rs78 barrier for first time

KARACHI- The dollar-rupee exchange rate edged up to over 78 in the domestic forex market on Saturday as Pak rupee fell to Rs 1.40 paisa against the US dollar in the open market amid high demand for the US currency.

On Saturday, the dollar crossed the barrier of 78 against the rupee in the interbank and open market dealings respectively.  

Since Wednesday, the rupee started to decline freely versus the US dollar during different trading sessions in the domestic currency market by breaching the liquid market benchmark and fundamentals, a currency dealer said, adding that on account of heavy selling pressure on capital market and deteriorating macroeconomic variables trigged by growing current account deficit and dwindling foreign exchange reserves, investors held off investment in the capital market.  

According to the daily forex report, the American dollar kicked off new week's trading at Rs.76.60 paisa, appreciated significantly and was trading at Rs.78.10 paisa on Saturday. Thus, rupee lost Rs.1.40 versus dollar in the kerb dealings.  In interbank dealings, bearish trend prevailed as rupee shed another 0.40 paisas amid demand of US currency remained strong.

The greenback started new day's trading at Rs.77.60 paisa, continued to record more gains and was changing hands at Rs.78 at close of markets on Saturday.

APP adds: Pak rupee plunged to all time low against euro and British pound in open market on Saturday due to rising demand and global financial crisis, market sources said.

They said rupee also dropped by Rs 2.80 to a record low at 141.80 against British pound and dipped by Rs 2.35 to yet again a historical low of 112 against euro.