KARACHI: Pakistani rupee weakened against the dollar in interbank dealings on Tuesday and closed at 107.35, a fall of 35 paisa compared to Monday’s close of 107/107.10.
According to currency dealers, the rupee is declining continuously against the greenback and on an average it has dropped 10 to 15 paisa daily in the last few days.
Similarly, in the open market, the rupee fell to 107.70/80 against 107.30/40 a day earlier.
After remaining relatively stable in October, the rupee has started shedding value again. It stood relatively firm last month when the United States released the Coalition Support Fund (CSF), dealers say.
Continuous improvement in remittances from overseas Pakistanis has also provided significant support to the currency in previous months.
“The rupee will weaken further in coming weeks and may come down to 110 to a dollar as almost all economic indicators have shown downward trend in the last few months,” a leading currency dealer said.
Dealers say the government needs to reassure investors and take initiatives to stabilise the currency because no good news is coming from the current economic situation of the country.
Pakistan’s foreign currency reserves have been persistently under pressure primarily because of continuous repayment of loans to the International Monetary Fund. Consequently, the rupee dropped about 5% in the last fiscal year.
Published in The Express Tribune, November 6th, 2013.