Rupee depreciates to Rs165.96 against US dollar

A currency exchange trader is counting money — AFP/File

KARACHI: The Pakistani currency on Monday depreciated by around 0.20% to close at Rs165.96 in the inter-bank market on Monday.

According to the daily data released by the State Bank of Pakistan, the rupee closed at Rs165.62 in the inter-bank market on Friday [August 27].

Speaking to, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said: “As the external trade has become restricted due to shortage of containers and clogging, etc., the demand for the dollar should remain limited in the short term.”

The analyst added that he expects the currency to remain stable in the ongoing week against the greenback.

“Though the currency is flexible and the parity is dependent on supply and demand, as the real effective exchange rate is around 97-98, I expect Pakistani rupee to remain around current levels,” Tariq added.

It is pertinent to mention that the real effective exchange rate below 100 means the country’s exports remain competitive and import expensive. The situation reverses when REER stands above 100 on the index.

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