Karachi September 20 2022: Pakistan Rupee depreciate for the thirteen consecutive day and drop by 99 paisa in today’s trading session as dollar shortages continue to persist in the market due to import of vegetables.
Recent floods have brought unprecedented crop damage. As a result, the prices of onion and tomatoes have sky-rocketed in the local markets. In order to alleviate the sufferings of the people due to abnormal price hike, the Prime Minister of Pakistan ordered urgent relief measures to ensure an uninterrupted supply of onion and tomatoe in the local markets. Elimination of all taxes and duties in procuring the two vegetables by import will help reduce their prices but increasing pressure on imports.
The Rupee is PKR 1.04 or 0.4 percent away from hitting record low of 239.94. According to Bloomberg, the currency is among the worst performers globally in September, having fallen more than 8%.
Minister for Planning, Development and Special Initiatives Ahsan Iqbal on Sunday said that the foreign aid being received for the flood victims in the country could help stabilize the Pakistani Rupee.
Pakistan’s Finance Minister Miftah Ismail has stated while speaking to business community that there is still much pressure on the dollar which will not allow us for opening of LCs for imports.
To support Rupee, Government of Pakistan increased profit rates for overseas Pakistani’s on PKR denominated Naya Pakistan Certificates and also revised downward the minimum denomination of NPCs in a bid to increase reserves. Rate on PKR denominated bonds is increased by 5.5 percent for three month, 5.25 percent for six months, 5.00 percent for 12 months, 3.25 percent for three years and 2.5 percent for five year securities.
Pakistan Rupee depreciates 99 paisa or 0.4 percent in interbank to trade at 238.9 against the dollar PST 15:00. Pakistan Rupee depreciates 8.52% or 20.30 in last thirteen sessions. Pakistan currency hit low of 239.94 on 29th July 2022 on uncertainty of IMF program.
In open market dollar moves up 50 paisa to trade at 244.8 at PST 15:00.
“The average banks’ buying per week was around two to four million dollars, which has now gone up to $12m on an average,” said Malik Bostan, the chairman of the Exchange Companies Association of Pakistan (ECAP).
The dollar remained strong around a two-decade high versus major peers on Tuesday as investors held firm in expectation of another aggressive rate hike by the Federal Reserve to rein in inflation. The dollar index , which measures the greenback against six counterparts, was steady at 109.69, stable for the moment after pulling back from as high as 110.79 earlier this month, a level not seen since June 2002.
