Islamabad - Pakistan's roller-coaster currency hit a historic low of 84.5 against the dollar on Friday, hours after the central bank announced that the country's reserves fell by 6.9 per cent last week, dealers said.

   The Pakistan rupee made a slight recovery later and closed at 83.2 to the dollar against the overnight close of 82.

   The currency weakened on the report by the State Bank of Pakistan (SBP) that foreign exchange declined by 570 million dollars in the week that ended on October 11.

   According to the SBP, at the start of current week the reserves stood at 7.75 billion dollars of which it holds 4.43 billion dollars.

Cross-spreading is mitigating and EURO/JPY is recovering driving support for EURO; bailout plan is likely to fuel recovery. Dip from highs holds technical support and should attract a rotation higher. Two-year low on a Friday likely a bottom near-term.

Rate at a buy point after latest attempt higher; OK to buy the next dip. Pullback under the 1.3500 handle likely to attract bids as further dip was bought aggressively last time. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view but be ready for continued two-way action ahead of a rally.

Rate firms after fall back yesterday but suffers selling after London; pullback to support around the 1.7380 area challenged and stops found under for lows. Rate at buy zone now but wait for further drop into 1.7250 area. Cross-spreading liquidation likely supporting the rate but two-way action adding to volatility. New Lows last week around the 1.6800 area likely to hold now. Traders note quality bids on the dip suggesting a bottom is in here somewhere.

A solid close over the 1.7300 handle has likely helped the longs; expect more buying on dips. Aggressive traders can look to the buy side again on any dip the next day or so. Follow-on selling likely from technical's but spillover strength from EURO likely to be better to end the week.

The USD is ending the day mixed today after a solid two-way overnight session last night; holding on to gains against the GBP and EURO and making new highs around the London fix. Traders note that focus remains on the weakness in the financial markets and a 500-plus point drop in the DJIA today didn't help sentiment despite weak economic data this morning.

Cross-spreading is mitigating and EURO/JPY is recovering driving support for EURO; bailout plan is likely to fuel recovery.

Dip from highs holds technical support and should attract a rotation higher. Two-year low on a Friday likely a bottom near-term. Rate at a buy point, OK to buy the next dip.

Aggressive traders can add to open longs on a close over the 1.3700 area. Pullback under the 1.3400 handle this week on lighter volume would be a great buy in my view. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view. Traders note stops triggered on the way down along with technical selling.

Rate falls back after recovery to trade flat; likely to pullback to support around the 1.7380 area for a buy point. Cross-spreading liquidation likely supporting the rate but two-way action adding to volatility.

New Lows around the 1.6800 area likely to draw additional bids and will likely hold on further weakness, traders note quality bids on the dip suggesting a bottom is in here somewhere. A solid close over the 1.7300 handle will likely help the longs. Aggressive traders can look to the buy side again on any dip the next day or so. Volumes lighter after the open. Follow-on selling likely to attract short-covering on further weakness. Follow-on selling likely from technical's but spillover strength from EURO likely to be better to end the week.