Karachi August 30 2023: The Pakistan Rupee has experienced a decrease in its value against the Dollar for the twelfth consecutive day, making a new low in interbank.
This decline is attributed to uncertainties surrounding the ability of the caretaker setup to enact reforms and attract foreign direct investment, especially given the recent removal of import restrictions by the central bank.
In the interbank market, the Pakistan Rupee has dropped by PKR 1.44 or 0.5 percent, bringing its trading rate to a new low of 304.49 (PST 13:50) against the Dollar in country’s history. Notably, during the previous session, the Rupee concluded trading at 303.05 against the Dollar in the same market.
Conversely, in the open market, the Rupee remain unchanged against the Dollar, resulting in a trading rate of 323 (PST 13:50).
Pakistan has agreed with IMF that the difference between Interbank and Open market should not be of more than 1.25%, which is PKR 3.75 at this rate. However, widening gap between open and interbank is the concerning sign for the currency market.
Few days earlier, Dr. Inayat Hussain, Deputy Governor SBP, pointed out that rising demand of dollars among the masses and import uplift are the primary drivers in dollars fluctuations. He disclosed this while briefing the Senate Committee on consistent fluctuations in dollar price.
The deputy governor stated that our current responsibility is solely to maintain a functional currency market and prevent any form of market manipulation.
