Power Shares US Dollar Index Bullish (UUP)

[fulcrumgavel]

December 08, 2013


KARACHI - In a rare development, the trend of rising dollar value against the beleaguered rupee has reversed in the last couple of days following a recent statement by the Finance Minister Ishaq Dar on the dollar-rupee parity level in coming days.
Earlier this week Dar vowed that the government will bring rupee-dollar parity back to Rs98 to a dollar from Rs110/dollar.
The statement shook the currency markets and a sharp rise in rupee value was seen in the last couple of days.
The rupee regained some of lost value and is now trading at around Rs108.50 to a dollar in the open currency market.
Foreign currency dealers said that banks are selling dollars to the exchange companies after the statement of the finance minister.
Malik Bostan, Chairman Foreign Exchange Association, said that banks have sold around $100 million to the exchange companies in the last couple of days that helped rupee to gain some of the lost ground.
High volatility in the rupee-dollar parity has been a source of concern not only for the general public but also for those who had invested heavily in dollar in the hope that the rupee will decline further in coming days.