Rupee inches down by 0.10%
Photo: file
Pakistani currency maintained its downtrend for the third consecutive working day on Tuesday as it dropped 0.10% (or Rs0.22) at Rs221.91 against the US dollar in the inter-bank market. The rupee briefly breached the 222 level, but partly recovered in late hours. This suggests that 222 has become a strong resistance level in recent days. The rupee has continued to stabilise in the range of 221 to 222 for the past three weeks. The currency shed Rs0.49 from its value in the past three consecutive working days amid a fresh surge in yields on Pakistan’s US dollar-denominated bonds in the international market. Apart from that, Pakistan’s risk of default on international payments, measured through a five-year currency default swap (CDS), hit a new high of 64.2% on Monday. The currency has consolidated around current levels in the backdrop of low foreign currency reserves and the drop in export earnings and workers’ remittances.
Published in The Express Tribune, November 16th, 2022.
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