KARACHI (January 16 2003) : Several dollar holders, under the prevailing circumstances, are preferring to transfer euro from the US currency due to persisting fall in the greenback value, market analysts said.
Actually, further likely losses in future are forcing them to offload their holdings.
In the meantime, some foreign observers noted that the euro–seen as a safe haven currency–is also stronger against the dollar and are predicting that the single European currency is likely to test new high of 1.07 and 1.08 per dollar in the coming days.
Influenced by world and local market trend of the euro, money dealers are also expecting that the euro may emerge as a stronger currency and may touch new high at Rs 62 in the near future, if the fundamentals did not change.
The rupee made a handsome recovery versus the dollar after the September 11, 2001 incident, but it failed to stabilise against the single European currency, dealers said.
Locally, people have lost confidence in dollar investment due to continued falling trend in its value.
They say that general interest is not seen in the market at all; there is only corporate demand which is running the currency trade.
Some rush of dollar sellers is clearly visible in the absence of market moving factors, they added.
Internationally, the looming shadow of war against Iraq and weak US economic scenario are keeping dollar investors away from US currency trade.
In the kerb market, the euro is easily available at above Rs 61, money changers observed.
Some dealers estimated that since January last year, the euro has gained around eight percent, or Rs 9, in relation to the local currency.