KARACHI: Pakistani Rupee (PKR) plunged for 12th consecutive session against the dollar on Monday to end at PKR 237.91 in the interbank foreign exchange market.
The exchange rate witnessed a decline of PKR 1.07 in rupee value to end at PKR 237.91 as compared with last Friday’s closing of PKR 236.84 in the interbank foreign exchange market.
The local currency recorded a decline of Rs19.31 or 8.83 per cent during the past 12 sessions from Rs218.60 against the dollar on September 01, 2022.
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.
It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.
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).
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.
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.