The rupee continued to depreciate against the dollar on Tuesday, losing another Rs1.71 in the interbank market during afternoon trade, according to the Forex Association of Pakistan.
As of 12pm, the dollar was trading for Rs287 in the interbank. It had closed yesterday at Rs285.29.
In the open market the dollar was changing hands for Rs287.5 during the afternoon.
This is the 12th straight session in which the rupee trended downward. Since Oct 20, it has shed 2.9 per cent. The dollar entered its 12th consecutive session of strengthening against the rupee.
The downward trajectory ate into the recovery that the rupee experienced in Sept, following a clampdown on illegal currency markets.
Some bankers believe that a short supply of dollars and poor growth of exports could further weaken the local currency. Experts said the announcement of general elections on Feb 8, 2024, has attached some additional uncertainty in the political and economic scenario.
Currency experts said the demand has been high as the importers were keen to buy to save the future cost of dollars which may go up.
Zafar Paracha, general secretary of Exchange Companies Association of Pakistan, said, “The sentiments have changed. People became pessimistic about the rupee strengthening further. Because of this, exporters once again stopped selling their dollars.”
He added that every time the political and economic situation of Pakistan starts getting better, anti-state elements get active, whether they are outside or inside Pakistan.
“People regularly try to write off the rupee and create panic. Moreover, the Afghan refugees who are leaving, they are also smuggling as many dollars as they can.”
However, he added that Pakistan’s financial credentials were good. The company results looked promising, as the stock exchange reached an all-time high.
More to follow
from The Dawn News - Home https://ift.tt/GRuzAst
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