Rupee devaluation continues; Dollar jumps to PKR 235.88

Rupee devaluation continues; Dollar jumps to PKR 235.88

KARACHI: The devaluation in Pakistani Rupee (PKR) continued for 10th straight day as the US dollar ended PKR 235.88 in interbank foreign exchange market on Thursday.

The exchange rate witnessed a decline of Rs1.56 in rupee value to end at Rs235.88 to the dollar from previous day’s closing of Rs234.32 in the interbank foreign exchange market.

READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

The local currency recorded a decline of Rs16.08 or 8 per cent during the past 10 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.

READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

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 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.

READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank

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.

READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82