ISLAMABAD: The Pakistani rupee on Thursday continued its downfall for the fifth consecutive day against the US dollar in the interbank market.
According to State Bank of Pakistan (SBP) the rupee closed at 225.42 against the US dollar in the interbank which is Rs2 less than the last the close of 223.42.
The rupee is under pressure once again due to the US dollar’s rampant surge in the international market, which has caused local exchange outlets to run out of the greenback and rattle markets once again.
Local factors such as dollar smuggling, informal currency trading, and the suspension of import regulations on essential goods like vegetables have also played a role in derailing rupee-dollar parity.
In view of the issues prevailing in Pakistan the expats have seemingly slowed down remittances and prefer ‘informal’ channels to send money back home in exchange for high-yielding returns. Simultaneously, exporters have understandably resumed hoarding the dollar for a huge payday.
In addition, as per analysts political uncertainty, loss of confidence, higher forex needs (due to flood requirements, a backlog of letters of credit payments, and higher Afghan trade), as well as slower inflows are all contributing to the weakness of the rupee.
