Karachi: Pakistan Rupee Continues to Depreciate Against US Dollar In the interbank market for the fifth consecutive session on Thursday (today) amid the upward trend of the dollar in global markets.
the local unit Changing hands at 225.19 after losing 1.69 in the interbank market during intraday trading. The value dropped from the close of the previous session at 223.42.
the rupee A cumulative loss of about 6.6 against the dollar since trading this week. And it appears to be in the same format as seen two months ago. When the local unit touched 239.37 on July 28
Rupee depreciation based on fluctuations in the supply and demand of the dollar in the currency market.
Traders and dealers expect the rupee to trade in the 218-19 range over the next few days. But the situation has changed dramatically as the flood has eclipsed the International Monetary Fund (IMF) disbursement.
Preliminary estimates suggest that Pakistan has suffered massive economic losses in the range of $10 to $12.5 billion as a result of the major floods. And the government is also planning to reduce the Government Development Program (PSDP) by 150 billion rupees.
Most of the local units remained flat last week. As markets breathed a sigh of relief when the $1.16 billion loan line arrived after the IMF revived the bailout package for the cash-stricken country.
talk to Geo.tvDr Khakan Hassan Najib, an economist and former adviser to the Federal Finance Ministry, said it was comforting for the market to see Pakistan resume its program with the IMF after completing the seventh and eighth hearings.
He noted that starting a new project allays fears of challenging situations in the short term. and create hope of unlocking funding from other multilateral lenders. and friendly countries
However, he noted that the economy suffered its worst floods in decades. This forced the government to halve its growth to 2.3%.
Najie said that after the flood Damage to cotton and rice crops could hurt previously estimated exports of about $36 billion and increase the current account deficit.
other analysts raised the same issue The rupee is expected to come under some pressure as Pakistan moves to import higher volumes of essential goods after the domestic floods.