Rupee continues to slide against dollar
File Photo (AFP)
The Pakistani rupee has continued to face battering on the seventh consecutive working day, shedding 0.715% (or Rs1.64) on a day-to-day basis to close at a five-week low of Rs229.82 against the dollar in interbank market on Monday.
The currency had closed at Rs228.18 against the greenback on Friday, according to the central bank.
Currency dealers at the open market continued to sell the domestic currency at a cheaper rate of Rs236 for one dollar as compared to Rs235.5 on Friday, the Exchange Companies Association of Pakistan (ECAP) reported.
The latest drop in the domestic currency came in the wake of Finance Minister Miftah Ismail’s statement that “friendly countries are not ready to provide financial assistance to Pakistan”.
The rupee has cumulatively lost 5.13% (or Rs11.22) in interbank market in the past seven successive working days compared to the recorded rate of Rs218.6 on August 1, 2022.
The currency had previously hit an all-time low of Rs239.94 on July 28, 2022.
Experts said the rupee has come under renewed pressure due to the dollar’s strengthening against other global currencies. Besides, high global inflation, including in Pakistan, has caused an additional depreciation in the value of the rupee.
Fahad Raud, Head of Research at Ismail Iqbal Securities, noted that the “latest depreciation in the rupee is justified considering the dollar strengthening, high inflation readings and flood-related agriculture losses to the tune of $20 billion”.
Raud projected the rupee reaching Rs230-235 under the current cycle of downturn. He also predicted that the currency could depreciate to Rs250 by the end of June 30, 2023.
Published in The Express Tribune, September 13th, 2022.
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