ISLAMABAD: The rupee tumbled against the dollar, it, however, scored new increases versus the euro as the single European currency set a fresh 11-year low versus the US dollar in the international market. In the interbank market, the rupee dropped by 19 paisa in terms of the dollar for buying and selling at Rs 101.00 and Rs 101.05 respectively.
In the open market, the rupee also lost 40 paisa in relation to the dollar for buying and selling at Rs 101.60 and Rs 101.80. The rupee, however, gained Rs 4.20 versus the euro for buying and selling at Rs 114.20 and Rs 114.45.
Commenting on the rupee’s fall, some analysts said that dollar was in demand during the week. Particularly, in the closing session, the rupee fluctuated sharply due to rising demand.
Country’s foreign exchange reserves were on the decline, as some leading investors were buying, which might have cause decline in the national currency, they said.
They said that reports showing exports of textile and clothing witnessed a negative growth of 6.38 percent in December 2014 to 1.175 billion dollars from 1.255 billion dollars in the same month of the previous year.
In the meantime, many traders were expecting that the trading activity may improve after the announcement of discount rate cut by the State Bank of Pakistan (SBP) to 8.5 percent from 9.5 percent on Saturday, in line with analyst expectations, citing lower inflationary pressure due to falling global oil prices.
Some analysts were of the view that as a result of the short supply of dollars, it is feared that the dollar may start moving upward.
