Dropped to Rs 285.82 on interbank transactions and Rs 301 on open market
Karachi:
Pakistan’s currency faced further declines for the third straight day, with the rupee falling 0.07 per cent (0.20 rupees) against the US dollar on Friday to reach 285.82 rupees in the interbank market. The fall was due to the rupee being weighed down by a reduction in the foreign exchange supply.
The Pakistan Exchange Firms Association reported that on the open market, the country’s currency fell sharply by 0.66% (2 rupees) to 301 rupees against the dollar.
The State Bank of Pakistan (SBP) released its latest weekly update on Thursday, revealing that foreign exchange reserves fell by $71.5 million to $4.31 billion in the week ending May 12, 2023. bottom. This is the third straight week of decline. spare.
In the open market, the sharp decline in the value of the currency is attributed to reduced supply at currency exchange counters due to political and IMF programmatic uncertainties, and increased demand for foreign currency ahead of the Hajj. It is
In an interview with The Express Tribune, Sana Tawfiq, economist at Arif Habib Limited downplayed the importance of the rupee’s depreciation in the interbank market, saying it would stay range-bound around current levels until the end of June 2023. expected. The government will continue to regulate imports through administrative measures to manage limited foreign exchange reserves and reduce the risk of default on foreign debt service.
Published in the Express Tribune on May 20th2023.
like Business on Facebook, follow @TribuneBiz Stay up to date and join the conversation on Twitter.