KARACHI: The US dollar climbed up against the Pakistani Rupee (PKR) to reach PKR 239.50 during midday interbank foreign exchange trading on Wednesday.
The foreign currency so far gained 59 paisas by midday trading from last day’s closing of PKR 239.91 in the interbank foreign exchange market.
A day earlier, the PKR witnessed the fall for 13th consecutive session as the US dollar ended near record high in interbank foreign exchange market.
The exchange rate recorded a decline of PKR 1 to end at PKR 238.91 to the dollar from previous day’s closing of PKR 237.91 in interbank foreign exchange market.
The local currency recorded a decline of Rs20.31 or 9.34 per cent during the past 13 sessions from Rs218.60 against the dollar on September 01, 2022.
It is pertinent to mention that the local currency recorded the all-time low of PKR 239.94 on July 28, 2022.
Currency experts said that mounting dollar demand for imports and corporate payments was pressurizing the local currency.
Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.
The rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.
Saudi Fund for Development (SFD) has confirmed rollover of $3 billion deposit maturing on December 05, 2022 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan, according to the SBP.
The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.
The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.
The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.
The rupee also fell due to continuous depletion in foreign exchange reserves of the country.