Rupee continues slides against dollar for fourth consecutive day.
The Pakistani rupee lost value against the US dollar for the fourth session in a row. On Thursday, the US dollar increased by Rs 2.08 in the interbank market against the rupee and traded at Rs225.50.
Meanwhile, the US dollar traded between Rs232 and Rs234 in the open market, according to the Forex association.
Despite receiving a loan tranche from the IMF for US$1.16 billion, the rupee continued to depreciate against the dollar. The dollar’s value against the rupee kept rising.
On Wednesday, the US dollar appreciated Rs2 and closed the day at Rs223.42.
Several factors including dismal macros owing to large-scale destruction by recent floods, extremely high ratio of inflation and increasing political noise are putting adverse pressure on the rupee.
Zafar Paracha, President of the Exchange Companies Association of Pakistan (ECAP) was quite hopeful about the rupee’s recovery. She told Mettis Global that the rupee’s appreciation might go up to PKR 200 per USD in the upcoming months in the backdrop of IMF loan disbursement and expected funds from other friendly countries.
On the other side, the Pakistan State Bank (SBP) banned the export of dollars on Tuesday after they became too expensive in the open market.
The SBP has placed strict restrictions on dollar exports.
According to the decision, all exchange companies must obtain permission from the SBP before exporting dollars.
The SBP has also notified the heads of all exchange companies about the ban on dollar exports.
It is worth noting that the SBP allowed dollar exports last month on Augu