Pak rupee plunged to the lowest

The dollar witnessed strength against the rupee in the interbank market, dealers said on the first day of week. It initiated the day’s trading at Rs 88.98 for buying, increased Re 0.35 and closed at Rs89.33 for buying and Rs89.38 for selling, a fresh record low. The European currency decreased against the rupee as it began the day’s trading at Rs119.94 for buying, lost four paisas and closed at Rs119.9 for buying and Rs120.1 for selling. The pound sterling gained its value against local currency, it started the day’s trading at Rs139.49 for buying, went four paisas up and closed at Rs139.53 for buying and Rs139.73 for selling.
In open market the dollar gained against the rupee, dealers said. It started the day’s trading at Rs 89.25 for buying, increased five paisas and closed at Rs89.3 for buying and Rs89.85 for selling. The Euro recorded strength against local currency as it initiated the day’s trading at Rs118.3 for buying, went 70 paisas up and closed at Rs119 for buying and Rs120.5 for selling. The British pound witnessed upward slope against the rupee as it began the day’s trading at Rs137.8 for buying, rose Re1 and closed at Rs138.8 for buying and Rs140.5 for selling.
Meanwhile, karachi Stock Exchange witnessed bearish trend on Wednesday amid panic selling overwhelmed in the market across the board after a rumour about the fitness of President Asif Ali Zardari. The KSE-100 index shed by 88.32 points or 0.78 percent closing at 11,283.89 points compared to 11,372.21 points in the previous session.
The KSE-30 index was down by 150.55 points closing at 10,444.27 points as compared to 10,594.82 points. KMI.-30 index was down by 306.96 points and closed at 20,546.36 points compared to 20,853.32 points of the previous session. The KSE all shares index closed with a loss of 62.51 points closing at 7,881.86 points compared to 7,881.37 points of the previous session.
Losers beat gainers trading took place in 312 companies out of which 62 companies closed in positive and 143 in negative while the values of 107 companies remained intact.
Unilever Pak Foods and Al-Ghazi Tractors were the highest gainers and increased by Rs8.33 and Rs 5.79 to close at Rs1698.33 and Rs171.07 respectively.
Political situation of the country put its impact on Karachi bourse news about the removal of present government is the main reason of this type of trade activity in market, Shamoon Tariq analyst at Invisor Securities said in his analysis.
Rumour about President Zardari’s fitness and uncertainty on political front after NATO attack were also reasons for downward trend. On the other side, the price cut in urea impact on fertilizer sector, said Ahsan Mehanti Director Arif Habib Investment.