KARACHI: The Pakistani rupee declined further on Friday continuing its losing streak against the US dollar as higher demand for the greenback coupled with dollar appreciation against major currencies weighed on the local unit.
The rupee depreciated by 4.08 and was being traded at 229.50 in interbank trade during morning hours today.
“The rupee has been under constant pressure due to a mismatch in the demand and supply position of dollars in the market. There is a higher demand for the greenback following the withdrawal of a ban on the import of non-essential luxury goods,” a currency dealer told The News.
“However, the inflows from exporters and remittances were not adequate to meet this market demand,” the dealer added.
“The strengthening US currency also puts pressure on the rupee.”
Other factors, according to a dealer, include political unpredictability, a decline in investor confidence in the economy, higher foreign exchange requirements (due to flood-related expenses, a backlog of letters of credit payments, and increased Afghan trade), and slower inflows, led to the decline in the rupee’s value against the greenback.
The cost of damage and devastation caused by the floods across Pakistan has surpassed the International Monetary Fund’s (IMF) loan disbursement.