Rupee continues to slide for eighth consecutive session

According to traders rupee is expected to continue depreciation during the ongoing week

ISLAMABAD: The Pakistani rupee continued its downward trend for the eighth consecutive working day, as it fell by Rs2.1 against the US dollar in the interbank market on Tuesday.

According to the Forex Association of Pakistan (FAP), the Pakistani rupee dropped to Rs231, after losing Rs2.1 during intraday trading in the interbank market.

Meanwhile, the currency dealers at the open market continued to sell the domestic currency at Rs236 to Rs238 against the US dollar.

The rupee has cumulatively lost 5.13% (or Rs11.22) in interbank market in the past seven successive working days compared to the recorded rate of Rs218.6 on August 1, 2022. The currency had previously hit an all-time low of Rs239.94 on July 28, 2022.

In today’s session the local currency closed at Rs231.92 per dollar, down 0.91% from yesterday’s close of Rs229.82.

According to a report by Dawn that quoted former president of the Karachi Chamber of Commerce and Industry (KCCI) Abdullah Zaki, talking about the issues businessmen were facing, he said dollar rates were changing every day. “How can import be feasible? If the exchange rate is not fixed, inflation can increase further.

Zaki complained that commercial banks were opening letters of credit (LCs) after much difficulty. “We fear that if the hurdles in opening LCs are not removed, then the import of raw material needed for the export industry will be stopped.

The former KCCI president called on Finance Minister Miftah Ismail to “immediately” consult stakeholders and form a concrete policy to stabilise the exchange rate and end uncertainty.

As per experts the rupee’s decline can be attributed to several factors including an increased import bill due to floods, smuggling, and friendly countries back tracking on their promise to loan Pakistan some money once it had received a loan tranche from the International Monetary Fund.

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