Rupee loses Rs4 against US dollar in open market

The local currency on Tuesday witnessed a significant fall in its value against US dollar owing to falling remittances and prevailing political uncertainty.

The Pakistan currency fell to Rs300 after it lost Rs4 against the greenback in the open market while it depreciated by Rs3.02 to close at Rs291.51 in the interbank market.

Speaking to Geo.tv, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said the fall in rupee value was expected after the caretaker government took charge.

He said the interim government is expected to take all measures in line with the conditions of the International Monetary Fund (IMF) that the elected regime avoided.

Moreover, he said the recent move to lift all restrictions on imports to meet IMF conditions was also one of the factors that led to the devaluation of the rupee as the move would put pressure on the country’s foreign exchange reserves.

Paracha added that the drop in remittances to Pakistan from its citizens working abroad to $2 billion in the first month of this fiscal year and falling exports were also the factors behind the rupee depreciation.

He said the rupee is expected to fall further against the US dollar to narrow the gap between open and interbank markets in line with the IMF condition.

The ECAP general secretary also blamed the presence of a grey market and the rise in terror incidents in the country for the rise in dollar value against the rupee.