Rupee hits fresh low

KARACHI: The rupee continued shedding its value against the dollar on Tuesday on prevailing political uncertainty and high importers demand, dealers said.

In the interbank market, the US dollar appreciated 15 paisas against Pakistani currency to close at Rs182.34, against Rs182.19 of the previous session. The dollar closed even higher at Rs183.50 in the open market.

Dealers said prevailing political uncertainty in the country was diverting the government’s attention to focus on the dollar and rupee parity in the country.

They said no outcome of negotiations between Pakistan and International Monetary Fund (IMF) was also putting pressure on the local unit.

The rollover of Chinese loan was seen as another factor that’s putting pressure on the rupee in the local market.

Zafar Paracha, general secretary at Exchange Companies Association of Pakistan, said domestic and global issues both were weighing down the domestic currency.

He added that international prices of energy and commodities were draining out more foreign exchange as the country had to import them for domestic needs. He was of the view that stalled negotiation between Pakistan and IMF was also putting pressure, as the release of next tranche was necessary for dollar-starved Pakistan, he emphasised.