KARACHI: Deterioration in Pak Rupee continued on Thursday owing to demand for import and corporate payments.
The rupee closed at Rs153.45 to the dollar from the previous day’s closing of Rs153.22 in the interbank foreign exchange market.
The rupee recorded a decline of Rs1.18 against the dollar since resumption of trading after Eid Holidays. The government had announced Eid Holidays from May 10, 2021 to May 15, 2021, which followed Sunday on May 16, 2021.
Currency experts said that due to extended Eid holidays the rupee remained under pressure.
They also said that ease in restriction related to coronavirus also encouraged importers to place orders to their foreign buyers.
They, however, said that the record inflows of workers’ remittances and export receipts of the local currency would make gains in the coming days.
Market analysts further noted that the rupee’s performance will largely depend on upcoming foreign inflows and Pakistan’s overall balance of payments position. They said that any improvement in export earnings and steady remittances from overseas Pakistanis could help stabilize the currency in the short term.
However, rising global commodity prices and higher import demand may continue to create pressure on the exchange rate. Traders added that the interbank market is expected to remain volatile, with frequent fluctuations driven by economic uncertainty and external account challenges. Policymakers are closely monitoring the situation to ensure stability in the foreign exchange market going forward.