Indian rupee weakens: The News

Tuesday, October 21, 2008
MUMBAI: The Indian rupee weakened on Monday as large dollar demand from importers offset gains in the local share market, with a cut in the central bank’s key lending rate providing only little respite.

The partially convertible rupee ended at 48.97/98 per dollar, 0.2 per cent weaker than 48.88/89 at close on Friday. It fell to 49.20 during trade, just short of its record low of 49.30 reached earlier this month.

“There was huge importer demand and there was also some defence-related dollar buying by state-run banks,” a senior dealer with a primary dealership said. “The central bank was expected to step in around 48.90, but they came in much later, pushing the rupee lower,” he said.

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Where the Dollar Rules: WSJ

U.S. Currency Can Still Buy
A Great Vacation -- In South Africa

By STAN SESSER
May 3, 2008; Page W1

"In the center of South Africa's wine country, about an hour's drive from Cape Town, travelers can stop at the elegant Wijnhuis restaurant in Stellenbosch and order a flight of six local wines. The cost: about $4.

Americans venturing through this area could be excused for thinking that they've gone back in time, when U.S. currency was king. In recent months, the dollar has plunged around the world. In late April, the euro reached a record high against the dollar, with one euro briefly costing more than $1.60. It now costs about $1.54.

But things are different in South Africa. In the past year, while the dollar has plummeted in Europe, Japan and almost everywhere else, it has risen in value in South Africa -- and in at least six other places. Some of them, including Iceland and South Korea, have such a high cost of living that a tourist won't notice any bargains. But three countries -- South Africa, Argentina and Indonesia -- allow Americans to revisit the days of the dollar's glory...

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Pakistan's Currency's Downward Spiral

Muhammad Saad Sarwar

April 26th, 2008

Pakistani rupee has been spiralling downwards against the dollar in the past few weeks touching Rs. 65 to a dollar. This at a time when most currencies in the world, including those of the developing countries are showing a rise in value to the dollar. Some of this decline can be attributed to Pakistan’s swelling trade deficit along with the price hike of oil touching an all time level of $120 to a barrel. This trend is difficult to arrest unless concrete measures are taken to stop the import of exotic food items which the general populace can live without, such as foreign juices, cheese, chocolates etc. Also, the import of items of luxury which do not directly take part in the development of the country should be somewhat limited and kept to an appropriate level per year. Pakistan also very desperately needs to diversify its reserves into a basket of currencies which should include the rising Euro and the British Pound amongst other rising currencies such as the Thai Baht, Turkish Lira and Brazilian Real. Warren Buffet the world’s most famous investor has also been reported to have invested a substantial amount of money in rising currencies such as the Brazilian Real away from the traditional stocks. It is about time Pakistan took the diversification of reserves seriously and pegged the Pakistani rupee to a more stable euro than a vulnerable dollar.