Connect with us

Hi, what are you looking for?

Online Business Success

Rupee continues to fall, settles at 173.47 against US dollar


— Reuters/File
— Reuters/File
  • Uncertainty regarding ongoing IMF talks, increase in demand from importers drag down currency.
  • Analysts expect the rupee to trade in the 171.25-171.55 range during the week.
  • Traders are closely monitoring the development around the IMF talks.

KARACHI: The rupee depreciated by an additional 0.4% or Rs0.69 against the US dollar on Wednesday and closed at an all-time low of Rs173.47 in the inter-bank market.

According to data released by the State Bank of Pakistan (SBP), the rupee closed at 172.78 on Monday.

Shedding light on the reason behind the decline, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq told Geo.tv that the demand for dollar is high as outflows for imports exceed inflows from remittances and exports.

“As the exchange rate is now flexible, higher demand is resulting in increased parity rate,” the analyst added.

With a fresh decline of 0.4%, the rupee has depreciated 10.11% (or Rs15.93) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Moreover, it has cumulatively dropped 13.92% (or Rs21.2) since its recent high of Rs152.27 against the greenback recorded on May 14, 2021.

Last week, speaking at the launch of the Kisan Portal, Prime Minister Imran Khan said that the pressure on the Pakistani rupee is temporary and claimed it will be over soon.

Economists say that the main behind the constant depreciation of the rupee is Pakistan’s current account deficit — which clocked in at $1.1 billion in September 2021 — and the International Monetary Fund’s (IMF) demand for further devaluation of the rupee.

Advertisement. Scroll to continue reading.

Earlier, some traders said that the rupee is expected to remain under pressure against the dollar during the ongoing week due to foreign currency demand from importers and the impact of high crude oil prices.

They expect the rupee to trade in the 171.25-171.55 range during the week as traders are closely monitoring the development around the IMF talks.

It is pertinent to mention here that the free fall of the rupee came since the government ended its control of the exchange rate under the IMF condition and let market forces determine the rupee-dollar exchange rate keeping in view the demand and supply of the foreign currency.



Source link

Click to comment

Leave a Reply

Advertisement

Latest

Top Stories

Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter. ETH is burning at a rapid rate! Read on to discover the statistics behind...

Technology

In context: It’s not uncommon to see consumers using the default password of their devices, leaving themselves vulnerable to possible cyberattacks. To remediate this...

Top Stories

Bitcoin (BTC) has stabilized at around $55,000 after dropping by $6,000 in a single day — but crypto market sentiment is still in shock....

Online Business Success

— AFP/File Several complaints lodged by customers from across Pakistan regarding the “sudden loss of thousands of rupees from their HBL accounts without an...

Loan And Finance

A Pennsylvania-based law firm and its attorneys have entered an agreement with the AXA XL subsidiary, Catlin Insurance Company, to dismiss with prejudice the...

Top Stories

Ethereum (ETH) co-founder Vitalik Buterin has proposed a new limit on the total transaction calldata in a block to decrease the overall transaction calldata...

Technology

Hear from CIOs, CTOs, and other C-level and senior execs on data and AI strategies at the Future of Work Summit this January 12,...

Top Stories

A group of five Democratic senators has reportedly rejected President Joe Biden’s nominee, Saule Omarova, to head the Office of the Comptroller of the...

Advertisement

You May Also Like

SEO Guide

How to index website on Google? Do you want to drive more organic traffic to your new website? I am sure your answer is...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Blogging

In this post, I will discuss the top ten profitable blogging niches ideas for Adsense approval and high traffic. whether you use Blogger or...

SEO Guide

Want to rank in Google image search? Images that you use as a featured images when writing a post actually appear on Google Images...

Advertisement