Dollar snaps 28-session losing streak

The winning streak of the rupee came to a halt on Tuesday after lasting for 28 consecutive sessions. Official data showed the local currency lost 0.07 per cent of its value against the dollar from a day ago to close at 277.03. Speaking to Dawn, Arif Habib Ltd Head of Research Tahir Abbas said higher demand for the greenback to make upcoming foreign payments put pressure on dollar supplies in the interbank market, leading to a slight erosion in the rupee’s newfound strength. The overall gain in the rupee’s value since Sept 5 has been 10.9pc. The impact since the beginning of October alone has been 3.8pc. Mr Abbas said the real effective exchange rate — an index that’s often used as a proxy for the strength of a currency relative to a basket of other currencies — is currently hovering around the 100 mark. Its presence in the vicinity of 100 suggests the rupee is “fairly valued” at the moment, he said. “I see its consolidation in the 275-280 range,” he added.