The rupee felt the heat of prevailing political uncertainty in the country and slipped below 183 to close at 183.48 against the US dollar in the inter-bank market on Thursday.
According to the State Bank of Pakistan (SBP), the rupee had closed at Rs182.64 on Wednesday.
“Rupee crosses Rs183 level, records new low against the dollar,” stated a report of Arif Habib Limited.
The currency was down 0.46% day-on-day and 14.13% since the beginning of fiscal year 2021-22 on July 1, 2021.
Speaking to The Express Tribune, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said that in March Rs390 million was pulled out of T-bills and $900 million was paid by Pakistan for the settlement of Reko Diq case.
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“Such lofty outflows mounted pressure on the rupee, hence it was on the decline,” he said. “Moreover, there is a general flight to safe havens all across the world during the current uncertain times and people are buying dollars, which is leading to further appreciation of the greenback.”
Finally, the rupee was also declining due to the political uncertainty in the country, he said.
In addition, Pakistan has to make some payments at the end of every quarter and March 31 marked the first quarter of current calendar year, hence the country made some dollar-based payments, which pulled the local currency down, Tariq said.
Echoing his views, AA Gold Commodities Director Adnan Agar stated that the rupee was depreciating primarily due to the political uncertainty.
Published in The Express Tribune, April 1st, 2022.
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