KARACHI: The US dollar continued its upward journey against Pakistani Rupee (PKR) to reach Rs 233.50 during midday trading at interbank foreign exchange market.
The exchange rate witnessed a fall of Rs1.58 and being traded at Rs 233.50 agains the dollar as compared with previous day’s closing of Rs231.92 in the interbank foreign exchange market.
READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank
Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.
Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.
The rupee is falling continuously since start of the current month. The local unit yesterday closed witnessing an eight consecutive decline against the dollar. The dollar gained Rs13.32 against the rupee during the ongoing streak till September 13, 2022.
READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82
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). The local currency has recorded Rs11.22 against the foreign currency during the past seven sessions. The local unit was at Rs218.60 to the dollar on September 01, 2022.
READ MORE: Rupee weakens sixth straight day; dollar ends PKR 228.18
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 weakens; Dollar jumps to PKR 225.42 at interbank
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.