Pakistani currency maintained its downtick for the second consecutive working day on Monday, standing at Rs279.26 against the US dollar in the inter-bank market.
According to State Bank of Pakistan’s (SBP) data, the rupee inched down 0.02%, or Rs0.07, against the greenback on a day-on-day basis.
Market talk suggests that the rupee came under little bit of pressure despite higher supply of the foreign currency in the banking system.
Rising petroleum prices in the international market and the strengthening US dollar against other major global currencies together mounted pressure on the rupee. Crude oil price has risen to $79 per barrel and may soon reach $80. With this increase, Pakistan’s energy import bill is likely to swell, resulting in higher demand for dollars to make import payments.
Read Rupee falls slightly from 4-month high
On the other hand, the US dollar has strengthened around 3% in the past couple of months.
The rupee has been fluctuating in a narrow band of Rs279-280/$ for over
five weeks.
In the open market, the currency dropped Rs0.02 to Rs282.05/$, according to the Exchange Companies Association of Pakistan.
The disparity between the inter-bank and retail markets widened to Rs2.79 (almost 1%), about a quarter percentage point away from the International Monetary Fund recommended maximum limit of 1.25%.
Published in The Express Tribune, March 5th, 2024.
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