KARACHI: The Pak Rupee (PKR) depreciated by eight paisas against the dollar on Monday due to higher demand for import and corporate payments.
The rupee ended Rs168.10 to the dollar from last Friday’s closing at Rs168.02 in the interbank foreign exchange market.
Currency experts said that the market witnessed dollar demand during the day for import and corporate payments.
They said that the ballooning trade deficit and subsequent widening of the current account deficit kept pressure on the exchange rate.
The experts said the country needs to encourage inflows of the foreign currency to support the local currency.
They further noted that consistent inflows through exports, remittances, and foreign direct investment are essential to ease pressure on the rupee in the coming sessions. Any delay in external financing or weaker export performance could keep the currency under strain.
Analysts also highlighted that prudent monetary policy and effective management of import volumes would play a key role in stabilizing the exchange rate. Moreover, improved market sentiment, supported by clarity on economic reforms and engagement with international lenders, could help restore investor confidence and reduce volatility in the foreign exchange market over the medium term.
However, short-term fluctuations are likely to persist amid global uncertainties and shifting dollar demand, keeping the currency market cautious in coming days.