Image of Reuters file.
KARACHI: The Pakistani currency on Tuesday depreciated beyond the awaited level of Rs165 against the US dollar on the interbank market during intra-day trading, but recovered in part to close at a new seven-week low of Rs164.89.
During the day, the rupee hit a low of Rs165.5, down Rs1.42 compared to Monday’s close of Rs164.08. It was the fourth consecutive trading session that saw a rupee depreciation.
Rupee lost ground due to increased demand for the dollar after PM Imran Khan reduced the lock on Monday. Monday night, the government allowed more economic sectors to return to work starting Tuesday.
A few months ago, several research houses anticipated that rupees would trade between Rs165 and Rs170 at the end of June, given the surge in dollar demand and falling supply.
The rupee has cumulatively depreciated Rs3.97 or 2.46% in the last four trading sessions (May 28 – June 2).
Earlier, the currency had recovered to Rs159.65 against the US dollar on May 5. A currency trader on the Wall Street Exchange Company in Karachi said he sold dollars at Rs166 and bought at Rs162 on the open market. The broad spread shows the growing gap between dollar demand and supply.
“However, there are no US dollar buyers and other major foreign currencies nor are there sellers at public transaction counters,” the dealer said.
Published in The Express Tribune, 3 Junerd, 2020.
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