Daily Times

Rupee on Tuesday turned the losing tide on the dollar, bouncing off eight-session lows, dealers said. The local currency gained Re0.24 or 0.11% against the greenback in the inter-bank market to close at 223.42. That compared to Monday’s close of Rs223.66. The country’s currency has shed Rs2 or 0.9% versus US currency during the last eight trading sessions. Analysts said that even the improvement in the country’s current account balance failed to cheer up the rupee. The current account deficit fell 68% to $567 million in October. The market sentiment is negatively impacted by Pakistan’s growing risk of default on its obligations to repay foreign debt, the delay in IMF-Pakistan negotiations, and the absence of a timeframe regarding incoming financing from friendly countries, according to dealers. The current account gap has reduced, but exports and remittances have taken a serious hit. Inflows have dried down, and traders are keenly looking out for World Bank to send in aid money, so crucial at this time. The general consensus in the money market remains downbeat. However, positive news from the political and inflows front was seen setting the rupee’s direction down the line.