PKR falls for 13th session as dollar ends near record high

PKR falls for 13th session as dollar ends near record high

KARACHI: The Pakistani Rupee (PKR) witnessed the fall for 13th consecutive session on Tuesday as the US dollar ended near record high in interbank foreign exchange market.

The exchange rate recorded a decline of PKR 1 to end at PKR 238.91 to the dollar from previous day’s closing of PKR 237.91 in interbank foreign exchange market.

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

The local currency recorded a decline of Rs20.31 or 9.34 per cent during the past 13 sessions from Rs218.60 against the dollar on September 01, 2022.

It is pertinent to mention that the local currency recorded the all-time low of PKR 239.94 on July 28, 2022.

Currency experts said that mounting dollar demand for imports and corporate payments was pressurizing the local currency.

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

Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

The rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

Saudi Fund for Development (SFD) has confirmed rollover of $3 billion deposit maturing on December 05, 2022 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan, according to the SBP.

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 local currency recorded 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.