Pakistani rupee falls to record low of 86.50 to dollar

[IndianTiger]

May 23, 2011, 10.48am
IST Reuters KARACHI: The Pakistani rupee
fell to a record low of 86.50 to
the US dollar on Monday on
increased demand for dollars
for import payments and
concerns that growing tensions with the West could
choke off much needed
foreign aid. A major attack by militants
on a naval aviation base in
Karachi further weakened
sentiment on the local
currency, adding to the
country's reputation for instability, traders said. The rupee was trading at
86.20/30 to the dollar at 9:54
a.m. (0452 GMT), compared
with its previous record low
of 86.40 on Saturday. Concerns over a reduction in
foreign aid have flared since
US special forces found and
killed al-Qaida leader Osama
bin Laden early this month in
a home near the Pakistani capital.

 

[somebozo]

That paves the way in for more chinese imports and less US imports. Why are exports not being boosted?

 

[Skull and Bones]

That paves the way in for more chinese imports and less US imports. Why are exports not being boosted?

Add this with rising inflation, and you have more things to worry about.

Bdw, Pakistan is not a major market for US products, China already rules in that segment.

 

[kawaraj]

maybe should take chinese yuan as another major reserve currency.

 

[Skull and Bones]

maybe should take chinese yuan as another major reserve currency.

That'll be a big mistake, ask any financial expert in this forum.

 

[deckingraj]

^^^^^^^
Guys devaluation of a currency is often not a bad sign....devaluation means that imports will become costlier forcing the customers to move to home made goods whereas exports gets cheaper and thus gives you edge over potential rivals.....For example - China is working hard to keep the currency devalued...

However what is important is what has triggered the devaluation....A free falling rupee means fiscal system is out there and is certainly not good news...

 

[Spring Onion]

its not record low as it has been running in 87 till recently

 

[ramu]

That paves the way in for more chinese imports and less US imports. Why are exports not being boosted?

Pakistan has got itself in to a muddle with free trade with China. No way in hell can it compete with an artificially controlled currency and with superior technology on Chinese side. Domestic manufacturers can start taking up new jobs.

 

[ramu]

its not record low as it has been running in 87 till recently

Yes Jana, all is well and Pakistan is doing fine on the currency front.
Compare Indian rupee to the US dollar, is at INR 45 to a dollar

 

[Spring Onion]

Yes Jana, all is well and Pakistan is doing fine on the currency front.
Compare Indian rupee to the US dollar, is at INR 45 to a dollar

I was correcting the misconception that it was the highest. the highest already existed .

 

[SMC]

Yes Jana, all is well and Pakistan is doing fine on the currency front.
Compare Indian rupee to the US dollar, is at INR 45 to a dollar

Come on ramu, why the complete and utter diversion? Also a strawman.

 

[DelhiDareDevil]

This can work wonders for Pakistan, this will force Indians to buy Pakistan goods, as they currency is cheaper.

Hence Pakistan goods will be cheaper for Indians.

But however, the question is, how cheap can Pakistan manufacturers make it? Many have already lost jobs to China.

 

[kingkobra]

with PKR going so low compared to dollar i am sure pakistan can establish a competent outsourcing(BPO-KPO) industry..provided they maintain stability in entire country...

 

[Pioneerfirst]

hopefully Pak reupee will come back to 85 vs dollar as Govt has agreed with IMF for reforms.

 

[farhan_9909]

USA leaves afghanistan=pak stable=no blasts=foreign investments=economic growthh increases=GDP grow more and rupee gain value against dollars