DOHA: A weakening dollar has pushed some major Asian currencies up against the Qatari riyal, foreign exchange operators said here yesterday.
Among the currencies which firmed up against the dollar-pegged riyal are the Indian rupee, the Philippine peso and Thai bath.
But the Pakistani rupee has depreciated a bit due to fears that the increasing demand for dollar to finance the country’s crude purchases from the global markets might put more pressure on the currency.
The Pakistani rupee was quoting at 21.70 against the riyal in the local foreign exchange market yesterday. “The rupee has been moving in a narrow band against the greenback for a while,” a foreign exchange expert said.
The Indian rupee whose exchange rate against the local currency was 13.50 just late last week, had firmed up to 13.31 yesterday. But exchange houses said that despite a little higher cost of the Indian rupee, remittances on the busy Indian sector remained unaffected.
The dollar has been showing weaknesses due to the inherent problems in the US economy, bankers said. “The currency is suffering due to the impact of the financial crisis on the US economy,” Muzammil Hanif, Senior Vice-President of Al Fardan Exchange, told this newspaper.
Asian economies are expected to perform better. They remain growth-oriented, so it is natural that their currencies would strengthen, he argued.
The Philippine peso has also been showing gains against the dollar and has consequentlyappreciated against the riyal. Its exchange rate against the riyal was 12.86 in the local foreign exchange market. Until recently, one riyal was fetching as much as peso13.20.
The Thai bath has been firming up against the greenback for a while with its exchange rate against the dollar-pegged riyal climbing up to 9.61. “The Thai currency has been appreciating,” Muzammil Hanif, whose exchange firm is quite active on the Thai sector, confirmed.
Asian currencies appreciating against the riyal is not good news, especially, for limited-income foreign workers here, a vast majority of whom come from South Asian and South East Asian countries, since they have to pay more to buy their currencies and remit them home.
The saving potential of these workers has already been eroding due to higher inflation rates, both here and in their home countries.
