Dollar further sheds value against rupee

KARACHI - The US dollar further shed value against the Pakistani currency in the open market and inter-bank operations. Thus after the resignation of former President Pervez Musharraf, the rupee has gained Rs 3.25 paisa in two days. On Tuesday, the dollar-rupee exchange rate parity reversed again and the Pak rupee recovered against the US dollar after witnessing slide position in the liquidity market. Analysts consider this recovery and price correction of the national currency versus U.S. currency as "artificial and temporarily relief" for money market keeping in view that the prevalent economic crisis is not ended indeed, the other crucial phase for the economy of Pakistan has been started after quitting the then President Musharraf from his office as macroeconomic stability and good fiscal governance would remain big challenges for the financial policy makers and stakeholders of the country. Despite vanishing political uncertainty, the Pak rupee may remain under pressure time to time until unless the weaknesses in the supply side like slowdown in capital inflows into the country is not improved. "The money market is still volatile and high degree of fluctuations and intensification in the rupee exchange rate price might be taking place for a couple of weeks", told a dealer.   Important to note that the Pak-rupee edged up by Rs 1.65 against the US dollar in the open market on Monday and closed at Rs 75. According to daily forex trading report, the US dollar started new day's trading at Rs.74, continued to give up grounds and was changing hands at Rs.73.75 at close of markets recovering 25 paisa in kerb dealings on Tuesday. In interbank market, the rupee recovered 0.60 paisa against the US dollar on Tuesday.  The national currency continued to witness recovery versus greenback. The US currency started off new day's trading at Rs.75, kept losing grounds and was trading at Rs.74.40 paisa at close of markets on Tuesday. The US currency was steadily gaining against rupee during the past few weeks amid speculations and manipulations by the market forces. 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.

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