Currency market remains shaky despite rupee’s gains

Despite a slight improvement in its value, the rupee looked shaky against the US dollar on Monday, according to currency dealers in the inter-bank market. The dollar shed its weight by Rs1.28. The closing price of the greenback, as reported by the State Bank, fell to Rs275.30 from Rs276.58 the previous day. Currency dealers said there was no solid reason behind the rupee’s improved showing. The dollar shortage has made trade and industry nervous. While the government’s financial team is busy negotiating with the IMF, Prime Minister Shehbaz Sharif said at the weekend the lender was giving the government a “tough time”, signalling that more difficulties are in the pipeline for the nation. “The government is deliberately intensifying political uncertainty by arresting known leaders, a move to make the economic crisis a sideshow to the political crisis,” said a financial analyst. He said the economic situation was more severe than the political crisis.