In a fortunate turn of events, the Pakistani rupee, which has been experiencing an ignoble rout for the past few sessions, has slide more against the US dollar after dropping by Rs0.87 to settle at Rs236.75 in the interbank market on Friday during interbank trade.
According to the State Bank of Pakistan (SBP), the local currency lost Rs0.87 and traded at Rs236.75, depreciating 0.66% from yesterday’s close.
The Forex Association of Pakistan (FAP) stated that the banks sold dollars at Rs237.30. Meanwhile, in the open market, the greenback is being sold at Rs240-242.
The Pakistani rupee has lost Rs17.33 against the US dollar over the past ten straight trading sessions.
Interbank closing #ExchangeRate for todayhttps://t.co/jGMzuWe0AB pic.twitter.com/cfR8OCXbAx
— SBP (@StateBank_Pak) September 15, 2022
The local currency will continue to face pressure despite the rupee’s positive start today, according to money dealers, unless the country achieves political stability, reduces its current deficit, stops the flow of dollars into its neighbours, bans non-essential luxury goods, and puts an end to speculative trading.
Since September 2, the rupee has fallen against the dollar.
Despite receiving the $1.166 billion blocked IMF tranche last month, the value of the local currency has been dropping, which shows that the market still lacks trust in the rupee.
As there is a higher demand for the greenback after the government scrapped the ban imposed on the import of luxury goods.
The rise in imports, remittances and exports did not increase to the required amount, thus, causing a disruption in the supply-demand position of the dollar.
Several factors including dismal macros owing to large-scale destruction by recent floods, extremely high ratio of inflation and increasing political noise are putting adverse pressure on the rupee.