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Tuesday October 04, 2022

Rupee continues to depreciate against dollar, closes at Rs221.4

Local unit closed at 221.42 after losing 1.54 against dollar in interbank market, up from yesterday's close of 219.86

By Web Desk
September 06, 2022
A currency dealer is seen counting $100 notes; while Rs500 notes are kept on the table. — AFP/File
A currency dealer is seen counting $100 notes; while Rs500 notes are kept on the table. — AFP/File

KARACHI: Suppressed by the economic fallout from the unpreceded floods in the country and skyrocketing inflation, the Pakistani rupee on Tuesday maintained its losing streak against the dollar in the interbank market.

The local unit closed at 221.42 after losing 1.54 against the dollar in the interbank market, up from yesterday's close of 219.86, according to data released by the State Bank of Pakistan (SBP).

Traders and dealers had expected the rupee to trade within a range of 218-19 in the coming days.

The currency move during the week will be influenced by importer demand and inflows [supplies] from exporters and remitters.

Last week, the currency largely remained stable as the market sighed in relief when a $1.16 billion loan tranche arrived after International Monetary Fund (IMF) revived a bailout package for a cash-strapped country.

However, the economic fallout from the devastating floods in the country and skyrocketing inflation will dent sentiment on the rupee.

The rupee’s movement in the open market also grabbed attention as the spread narrowed with rates in the interbank.

Analysts expect the rupee to come under some pressure as Pakistan moves to import a higher amount of essential commodities in the wake of floods in the country.

However, many also believe that the demand could be suppressed, keeping the current account balance in check.