The Pakistani currency continued its losing streak for the eighth consecutive working day, hitting a two-and-half-month low at Rs288.52 against the US dollar in the interbank market on Tuesday. The State Bank of Pakistan (SBP) reported a 0.21% drop, equivalent to Rs0.60, bringing the rupee’s value to Rs288.52/$ in the latest session.
Over the past eight working days, the currency has cumulatively depreciated by 4.17%, losing Rs12.06 in total. In the open market, the currency remained unchanged at Rs293 against the greenback on a day-to-day basis, as reported by the Exchange Companies Association of Pakistan (ECAP).
The exchange rate gap between the interbank and open markets narrowed down to Rs4.48, approaching the International Monetary Fund (IMF) directed level of 1.25%.
Speaking to The Express Tribune, ECAP President, Malik Bostan highlighted that the rupee is under pressure due to increased demand for the US dollar. Banks have now started facilitating traders to import all goods under the new IMF programme guidelines, compared to limited imports on a priority basis before the $3 billion programme acquired in late June 2023.
The demand for foreign currency remains high, surpassing available supplies.
Published in The Express Tribune, July 26th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ