Rupee sheds Rs2.37 against dollar

Reason behind sudden depreciation of local currency unclear

ISLAMABAD: The exchange rate of the Pakistan rupee depreciated by Rs2.37 against the US dollar in the interbank market on Tuesday, closing at Rs206.94 against the previous day’s closing of Rs204.56.

According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollars in the open market were recorded at Rs205.5 and Rs208, respectively.

Similarly, the price of the euro increased by Rs1.50 and closed at Rs214.81 against the previous day’s closing of Rs213.31.

The Japanese Yen gained one paisa to close at Rs1.52, whereas a decrease of Rs2.09 was witnessed in the exchange rate of the British pound, which was traded at Rs249.87 as compared to its last closing of Rs247.78.

The exchange rates of Emirates Dirham and Saudi Riyal decreased by 64 paisas to close at Rs56.33 and Rs55.14, respectively.

It is pertinent to mention here that the greenback took a hit after Punjab Chief Minister Hamza Shehbaz’s announcement of provinding free electricity to users of up to 100 units a month ahead of CM elections on July 22 – a move that would go negate conditions set by the International Monetary Fund (IMF) to revive its loan programme.

On the other hand, local media reports claimed that banks are forward booking dollars, weakening the rupee, as the policy rate is expected to increase on July 7.

Earlier on Monday, the rupee had closed at a three-week high of Rs204.56 against the greenback.

 

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