Web Desk (LTN NEWS): Wednesday (today) was the sixth day the Pakistani Rupee fell against the US dollar on the interbank market. This happened because the US dollar has been falling on the global market.
The Pakistani Rupee was worth Rs220.75 per Dollar at 11:13 a.m., according to data from the Forex Association of Pakistan (FAP). This was up 0.47 percent from the previous day’s close when it was worth Rs219.71 per Dollar.
The Rupee went up for 13 days after it announced that Ishaq Dar would be the new finance minister. This went on until October 12, when the Dollar had a small rise again.
In these 13 sessions, the Rupee went up against the US dollar by about Rs22, or 10.1%. However, the Rupee has decreased by Rs1.92, or 0.8%, since the trend changed in the last six sessions.
Read Rupee increases by 17 paisas against dollar
Komal Mansoor, head of research at TraceMark, said that the fall of the Rupee was caused by a “continual decline” in the country’s foreign reserves, which hit a three-year low in the week ending October 7.
She also said that foreign exchange rates are negative, which shows that the Dollar is not very liquid on the interbank market and that Pakistan CDS (Credit Default Swaps) are also going up.
Zafar Pracha, the General Secretary of the Exchange Companies Association of Pakistan, said the same thing and added that there were very few dollars on the open market.
He said that the dollar rates on the grey market are very high, at around Rs230 per Dollar, while the rates in Peshawar and Afghanistan are between Rs235 and Rs245 per Dollar, so people don’t use the legal exchange companies.
He also said that a drop in remittances and reserves and a downgrade of the country’s sovereign credit rating by Moody’s Investors Service caused the Rupee to lose value.
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