Rupee falls first time in four weeks.

KARACHI -- After recovering 11% in the past 28 consecutive working days, Pakistani currency on Tuesday depreciated 0.07% and closed at Rs277.03 to a dollar in inter-bank market on the back of uptick in demand for the greenback.

Market talk suggests the rupee has reached its 'fair value' at Rs277/$ and the slight correction did not come as a surprise.

A big question is whether the currency will resume its uptrend in a day or two, stabilise around current levels in the short to medium term or start losing the hard-earned gains of the past four weeks.

The emerging situation suggests exporters have sold their future earnings in foreign currencies on forward counters. Some of them have sold dollars without having physical possession in the hope they will buy back at a better price at some suitable time later.

Market people were of the view that the rupee would recover to Rs250-260/$ in the near future.

On the other hand, some importers have refrained from buying foreign currency as they waited for the rupee-dollar exchange rate to settle down at some point. It signals that the demand for US dollars has accumulated and the high supply and low demand situation may remain at least in the short run.

Earlier, the currency made a cumulative recovery of 10.93%, or Rs30.27, over 28 consecutive working days, which was the longest rally in three years. The rupee also won the title of world's...