Rupee Restarts Losing Streak Against the US Dollar With Another Big Dip

The Pakistani Rupee (PKR) resumed its fall against the US Dollar (USD) after posting improvements in the last two days of the previous week.

The local unit has been posting losses against the greenback for several weeks.

Today (Monday, 28 June), the PKR posted notable losses against the USD again. It depreciated by nearly 60 paisas against the USD in the interbank currency market, once again crossed the Rs. 158 mark and closed at Rs. 158.21 against the USD, as compared to Rs. 157.61 on Friday (25 June).

Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, attributed today’s depreciation to the FATF’s decision to keep Pakistan in the Grey List. He tweeted: “Pakistan’s financial market (Interbank/Equity) could see tense opening due to FATF’s biased stance for not clearing despite completing 26 out of 27 targets”.

He added that the inflows due to Eid will bring some relief in the coming days.

The other factors that have contributed to the continuous fall in the rupee’s value against the USD include higher import payments, an expected delay in the sixth review of the International Monetary Fund’s (IMF) $6 billion loan program, and debt repayments.

The PKR posted blanket losses against other major currencies as well. It depreciated by 73 paisas against the Euro, by nearly Rs. 1.15 against the Pound Sterling (GBP), by 25 paisas against the Australian Dollar (AUD), and by 57 paisas against the Canadian Dollar (CAD).

The PKR also posted losses against the UAE Dirham (AED) and the Saudi Riyal (SAR), and deteriorated by 16.3 paisas and 15.8 paisas respectively.

Source: Pro Pakistani

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