February 25, 2024

Rupee continues to be under pressure as the dollar gains ground

Rupee continues to be under pressure as the dollar gains ground

KARACHI: The demand and supply conditions for the dollar fluctuated on Tuesday, putting more pressure on the Pakistani rupee, which fell against the dollar in the interbank market.The local currency was trading at 221.60, up from yesterday’s finish of 219.86, after losing 1.74 points against the dollar during intraday activity in the interbank market.

Dealers and traders predict that the rupee would fluctuate between 218 and 19 in the next days.The demand from importers and the inflows of [supply] from exporters and remitters will have an impact on the currency movement during the week.After the International Monetary Fund (IMF) resurrected a bailout deal for a cash-strapped country last week, the market sighed in relief as the currency stayed relatively stable.

However, the negative economic effects of the country’s terrible floods and the soaring inflation rate would undermine confidence in the rupee.As the margin between rates in the interbank market reduced, the movement of the rupee on the open market also attracted attention.

As Pakistan tries to purchase more basic goods in the wake of the country’s floods, analysts anticipate some pressure on the rupee.Many people also think that the demand may be restrained, which would keep the current account balance in check.

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