The US dollar continued its run against the rupee for the sixth consecutive session on Tuesday to break the Rs196 mark – the highest time – in interbank trading, largely due to the depletion of foreign exchange reserves and imports.
According to the Pakistan Forex Association (FAP), the greenback earned Rs1.5 from the previous closing day of Rs194.60 a ride to Rs196.10 around 11:20 am.
This signal of a steady rise in the dollar against the rupee began on Tuesday last week, when the international currency reached a record high of 188,66. It went up to R190.90 on Wednesday, up from R192 on Thursday, up to R193.10 on Friday and up more than R194 yesterday (Monday).
While FAP data showed that the greenback closed at Rs194.60 on Monday, the State Bank of Pakistan recorded a close rate of Rs194.18. A It was morning The report, while quoting the SBP closing rate, said that the international currency was trading at higher levels before it remained at R194.18.
I It was morning The report noted that while the dollar retains the rupees in its strong position throughout the FY22 financial year, the last two months have shown the worst.
Moreover, a Parhlo.com The report said on Monday that when the PML-N-led coalition government took office on April 11, the dollar was worth Rs182.3, and since then, the rupee has lost Rs11.4 or 6.2 percent of its value.
According to currency dealers, the demand for the dollar has never dropped, which has not allowed local currency to remain anywhere.
They say the high demand for dollars is the main reason for the bullish trend in the stock market. The political drag on the ruling government over the reversal of petroleum and electricity subsidies – a requirement for the introduction of the International Monetary Fund (IMF) loan program – has also eroded stakeholder confidence.
During this period, the decline of the rupee is also influenced by the uncontrolled increase in imports and the slow pace of export growth.
Rising oil prices have doubled oil import bills, but oil imports are generally on record. In April, imports increased by 72pc, leaving no room for the government to improve its foreign balance.
Furthermore, foreign exchange reserves have grossed $ 10.3 billion, the lowest since June 2020.
Currency brokers say the unexpected high bill and low foreign investment did not support the exchange rate while more than 13bn of the default account already exists as a challenge to the government.
Vendors at the inter-bank have told It was morning on Monday if there is no opportunity to improve the exchange rate.
“The dollar is worth every day until the government takes concrete steps to prevent this for free,” said currency broker Artif Ahmed.
Lots to follow
