KARACHI: The rupee’s downward rally continued in the interbank as it fell for five straight days against the dollar to close at Rs 89.40 on Friday. The greenback’s demand surged due to high import payment
The rupee was traded at Rs 89.02 versus the dollar as imports’ payment of more than $50 million was arranged in the market for different purposes, said analysts.
http://www.dailytimes.com.pk/default.asp?page=2011123story_3-12-2011_pg5_5
Well, paper is paper, whether Rupee notes or Dollar notes are printed on it. If there is ‘nothing behind it’ then how can it ‘retain value’? The dollar used to be 4.30 to the Swiss Franc, now it is 0.90. The UK Pound used to be 12.50 Swiss Francs, now it is 1.46. (And the Swiss Franc is also only paper). We should have the ‘Gold Dinar’ … (see other articles on that).
I did not know Pakistan had an economy. It is running on US aid & Hard currency send by Pakistanis working abroad.