US dollar keeps crushing feeble Pakistani rupee, gains Rs2.10
Greenback appreciated by over two rupees by noon
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The falling rupee proved itself to be more spineless than ever against the surging US dollar as the greenback was persistent in retaining its upward trajectory with its latest appreciation of Rs2.10 in the interbank trading on Tuesday, reported 24NewsHD TV channel.
The money dealers informed that during the business activity today, the US dollar reaped a formidable gain and traded at Rs231, up by Rs1.18 in the interbank by 10:20am which it consolidated further by noon by when it was up by Rs2.18 and traded at Rs232. However, by the close of the day, the US dollar was up by Rs2.10 at Rs231.92.
Interbank closing #ExchangeRate for todayhttps://t.co/ITFdjpKw8B pic.twitter.com/LxIGLPyVyd
— SBP (@StateBank_Pak) September 13, 2022
It may be mentioned here that the US dollar has overall gained Rs12.94 during the last seven days.
On Monday, the US dollar also hovered and closed at Rs229.82 gaining Rs1.64 in its value and the open market rate for the greenback was Rs236, an increase of Rs1.5 on the first day of the week.
Interbank closing #ExchangeRate for todayhttps://t.co/V2nogjMqcl pic.twitter.com/yjpZbT1Cqa
— SBP (@StateBank_Pak) September 12, 2022
Though the country has received the stalled IMF tranche worth $1.166 billion last month but the market is still not reposing confidence in rupee as has been evident in the declining trend in the value of local unit.
The other factors which are negatively impacting the Pakistan currency arise out of the financial losses in the wake of recent floods as the country’s exports would be declining and imports would surge in view of rehabilitation of the flood-affected areas.
FPCCI President Irfan Iqbal Sheikh on Monday urged the government and State Bank of Pakistan to take cognizance of the fact that the local currency had again started to fall. He apprised that the rupee lost 4 percent value in just five sessions of the last week alone.
He was of the view that the differential between interbank and open market was widened to Rs8 to Rs10 due to speculative trading, rumours of further rupee depreciation and week implementation of policy tools by the central bank.
He alleged that the commercial banks were involved in the speculative trading of dollar and were grossing windfall profits.
He demanded stringent measures by the State Bank aimed at discouraging speculative trading.
“Country needs to revert to a fixed exchange rate regime instead of the current free-floating exchange rate mechanism,” he opined.
Reporter Ashraf Khan