Dollar hits PKR 239 in midday interbank trading

Dollar hits PKR 239 in midday interbank trading

KARACHI: US dollar becomes stronger against Pakistani Rupee (PKR) to reach at PKR 238 at midday interbank foreign exchange market on Tuesday.

The foreign currency continued the gaining momentum of past 12 sessions against the local currency.

READ MORE: PKR plunges for 12th session; Dollar ends at PKR 237.91

US dollar made so far another PKR 1.09 to trade at PKR 239 from last closing of PKR 237.91 in the interbank foreign exchange market.

Currency experts said that the falling foreign exchange reserves and high import payment pressured the local currency.

They said that usually dollar demand remained higher by end of each quarter due to oil payments and demand from corporate sector.

READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

Furthermore, they said that the recent statement of Finance Minister Miftah Ismail regarding lack of inflows from friendly countries also sent disappointments to the currency market.

It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

The rupee made 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.

READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

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.