Rupee slumps for 15th straight session against dollar

Rupee slumps for 15th straight session against dollar

KARACHI: The Pakistani Rupee (PKR) recorded a 15th straight day decline against the dollar on Wednesday to end at PKR 239.71 in the interbank foreign exchange market.

The exchange rate recorded a decline of six paisas in rupee value to end at PKR 239.71 against the dollar from previous day’s closing of PKR 239.65 in interbank foreign exchange market.

READ MORE: Rupee ends near historic low; Dollar gains to PKR 239.65

The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

The local currency has maintained the free-fall for the last 15 sessions. During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

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

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

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

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

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.