February 24, 2024

Rupee’s losing streak versus the dollar continues

The rupee weakens versus the dollar for the tenth session in a row

As the tremendous destruction brought on by the floods continues to deepen the nation’s economic situation, the Pakistani rupee’s losing trend versus the US dollar continued on Monday as the new business week got underway.As of 12:30 p.m., the local currency had lost Rs0.82 and was trading at Rs229 against the US dollar in intraday activity on the interbank market.

The Pakistani rupee would continue to weaken against the dollar in the interbank market the next week despite IMF inflows, according to dealers, because of the central bank’s inaction and the lack of a clear strategy to restore the economy.

“Investor concern has been helped fuel by the steep depreciation of the Pakistani rupee of more than 4% in the last six trading sessions,” said a foreign exchange trader. “Emerging currencies have continued to suffer greatly as a result of the US dollar’s reinforcing versus the main currencies as a result of the Federal Reserve’s constant rate hikes and increasing demand for safe investments,” he added.

The interbank market keeps tabs on market losses. The temporary ban on imports has caused smuggling from Afghanistan versus cash dollar payments to become more of a concern, which has increased demand for dollars on the open market.

The need for foreign currency in cash for visitors to Dubai, the dollar declarations made by arriving passengers, and the significant accessibility problems for withdrawing cash in some areas are other secondary factors.

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