ISLAMABAD: The Pakistani rupee (PKR) continued to depreciate against the US dollar today (Friday). The rupee closed at 228.18 and lost Rs2.76 compared to previous days close at 225.42 in the interbank market.
The rupee has lost ground for the sixth consecutive day against the US dollar as Pakistan’s economy continues to suffer from the recent floods.
According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollars in the open market were recorded at Rs 231 and Rs 233.5 respectively.
The price of Euro increased by Rs 5.22 and closed at Rs 230.41 against the last day’s closing of Rs 225.19.
The Japanese Yen gained four paisa to close at Rs1.60, whereas an increase of Rs 6.24 was witnessed in the exchange rate of the British Pound, which was traded at Rs 265.25 as compared to its last closing of Rs 259.01.
The exchange rates of Emirates Dirham and Saudi Riyal increased by 75 paisa each to close at Rs 62.12 and Rs 60.72 respectively.
Analysts suggest the local unit’s decline can be attributed to the surging import bill, which has been increasing as demand for a variety of goods, including food, has soared after floods drowned one-third of the country.
Currency dealers expect the rupee to moderate once foreign assistance in the form of flood relief and direct investments from partner countries start flowing into the central bank reserves. Naturally, the effect of newer inflows is expected to be short-lived, unless the greenback peaks and falls down against other global indicators as well.
Other factors causing the rupee’s depreciation include political unpredictability, decline in investor confidence in the economy, higher foreign exchange requirements (due to flood-related expenses, a backlog of letters of credit payments, and increased Afghan trade), and slower inflows.
