Karachi: On Tuesday, in the interbank market, the value of the Pakistani rupee fell from Rs 0.06 to Rs 277.74 in relation to the US dollar as demand for foreign currency increased and supply slowed.
The statistics from the State Bank of Pakistan (SBP) show that the local currency continued its downward trend for the second day in a row, falling a total of Rs 0.10 over the previous two days.
The currency has fluctuated in a small band and has mostly stayed constant over the last seven months, notwithstanding the recent decline.
According to the Exchange Companies Association of Pakistan, the local currency fell Rs 0.03 daily on the open market, closing at Rs 278.66/$.
Exporters have reportedly slowed down the sale of US dollars on the futures counter, according to market trends. At the same time, the market has seen a rise in demand for dollars.
The recent minor depreciation of the Pakistani rupee has resulted in this growing discrepancy between the supply and demand of foreign currency.
Additionally, the central bank noted that non-oil imports have been increasing, suggesting a slow rise in demand for the US currency.
The domestic currency markets are ignoring global financial institutions’ improved perspective on foreign credit flows and investment.
One such move is Saudi Arabia’s decision to complete a $1.2 billion oil plant for Pakistan by the end of this year. The kingdom has also provided guarantees to the International Monetary Fund (IMF) in this regard.
The price of gold rose by Rs 1,600 to Rs 285,000 per tola (11.66 grams), which is only Rs 400 less than the record high set last week.