KARACHI: The Pak Rupee deteriorated by another Rs1.04 in early trade on Tuesday ahead of monetary policy announcement and pressure of import and corporate payments.
The dollar is being traded at Rs160.91 in interbank foreign exchange market. The rupee closed yesterday at Rs159.87 to the dollar in foreign currency market.
Currency experts said that due to rescheduled payment against foreign debt the demand for greenback was high.
They further said that as rupee was also under pressure because by fiscal year end many multinational and foreign companies repatriated their profits.
The local currency was remained under pressure for the last over one week due to weak economic indicators.
The experts said that the State Bank of Pakistan (SBP) is scheduled to announce monetary policy for next two months today.
The analysts believe that the central bank may further increase key policy rate by 100 basis points to 13.25 percent as present policy rate of 12.25 percent.
However, some relief was seen in easing trade deficit and decline of import bill by around 9 percent.
The experts said that the policy to curb luxury and non-essential imports would help the local currency to show resilience against dollar.