The rupee faced a decline of 52 paisas against the US dollar on Friday as the interbank market resumed operations following an extended week-long closure due to Eid and regular weekend holidays. The local currency ended at Rs158.96 against the dollar, compared to its previous close of Rs158.44 last Friday.
Currency analysts attributed this decline to increased demand for the dollar as businesses rushed to settle transactions and meet commitments after the prolonged holiday break. The pressure on the rupee was further intensified by delayed inflows and heightened demand from importers.
During trading hours, the market opened within a range of Rs158.80 to Rs159.00. The rupee fluctuated throughout the session, touching a day high of Rs159.00 and a low of Rs158.95, before closing at Rs158.96. This movement underscores the volatility driven by post-holiday adjustments in foreign exchange requirements.
In the cash ready market, the exchange rate also reflected a drop in the rupee’s value. The dollar’s buying and selling rates were recorded at Rs159.00 and Rs159.50, respectively, showing an increase from the previous week’s levels of Rs158.30 for buying and Rs159.30 for selling.
Market participants noted that the local currency is expected to remain under pressure in the coming days, as external payments and increased import activity continue to drive demand for the dollar. However, they expressed hope that upcoming remittance inflows and any positive developments on the export front could lend some support to the rupee in the medium term.
The recent decline in the rupee’s value underscores the challenges faced by Pakistan’s economy, including a persistent trade deficit and reliance on foreign currency inflows to stabilize the exchange rate. Analysts advise businesses and investors to closely monitor the situation as further fluctuations in the rupee could impact import costs and inflationary trends.
As the foreign exchange market steadies after the holiday-induced surge in demand, the rupee’s performance will remain a critical focus for traders and policymakers alike.