KARACHI: The US dollar gained sharply against Pakistani Rupee (PKR) on Monday at ended at Rs216.66 in interbank foreign exchange market.
The exchange rate witnessed a decline of Rs2.01 in rupee to end at Rs216.66 to the dollar from last Friday’s closing of Rs214.65 in the interbank foreign exchange market.
Currency experts said that ongoing political crisis pressured the demand for the greenback during the day.
A day earlier, the government lodged an FIR against PTI chairman Imran Khan for threatening institutions. Further unconfirmed report suggested that the government attempted to arrest the former prime minister, which aggravated the security situation in the country.
The currency experts said that besides, falling foreign exchange reserves and higher demand for import payments also resulted in devaluation of rupee value.
The rupee recorded all-time low of Rs239.94 against the dollar on July 28, 2022.
Previously, the rupee made gain on reports of renewal of Saudi financial assistance helped to improve sentiments in the currency market. Further decline in international oil prices also helped the rupee to make gain.
Besides, the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.
It is worth mentioning that the foreign exchange reserves of the country depleted massively.
Pakistan’s foreign exchange reserves have increased by $52 million by week ended August 12, 2022. The foreign exchange reserves of the country have recorded at $13.613 billion by week ended August 12, 2022 as compared with $13.561 billion a week ago i.e. August 05, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.615 billion.
The official foreign exchange reserves of the State Bank witnessed an increase of $67 million to $7.897 billion by week ended August 12, 2022 as compared with $7.83 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $12.249 billion.