The US dollar rose to a six-month high yesterday at Rs103.45, crossing the barrier set by the central bank.
“The dollar was below or around Rs103 since March,” said Atif Ahmed, a currency dealer in the inter-bank market. “But pressure mounted on the market on Friday that pushed up the greenback to cross the level.”
Dollar’s demand from importers has been rising, but the State Bank was defending the value of rupee.
Prices of all commodities including oil and its by-products have declined sharply in the last three months. Crude oil, which was $112 per barrel in the beginning of this fiscal year, has now slumped to around $81 per barrel. The fall has influenced the entire international market, particularly the oil by-products which have declined between 25 and 30 per cent in the last three months.
