In the opening of the interbank market on Wednesday, the US dollar continued to gain value against the Pakistani rupee, increasing by Rs. 1.09.
The dollar increased by Rs. 1 and ended Tuesday at Rs. 238, down 0.42 percent from Monday, according to the State Bank of Pakistan (SBP).
According to a News Agency, Saad bin Naseer, director of financial data and analytics portal Mettis Global said it was a reflection of the market’s overall demand and supply dynamics.
Because the move “did not boost the liquidity of the dollar in the market,” the rupee had no reaction to the Saudi Fund for Development deferring a $3 billion deposit for a year.
Naseer said that intervention from the government will be necessary to halt further depreciation of the currency. He suggested that the government shorten the window of opportunity granted to exporters to bring their profits home.
Numerous exporters defer payments abroad in the hope that the value of the dollar will increase in Pakistan, at which point they will bring their money back. This frequently makes the nation’s money shortfall worse.
According to experts, the country’s borrowing requirements would rise in the wake of the devastating flash floods, which will also boost the cost of imports.
The rupee declined in value in each of the previous week’s five sessions, falling a total of 3.7% to conclude at 236.84, perilously near to its all-time lowest level of 239.94 in the interbank market.
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