KARACHI: The post-flood economic situation and dollar shortages in the country put the Pakistani rupee under pressure for a 15th straight session as local authorities on Thursday registered additional losses on the interbank market.
The rupee fell to 239.71 after a 0.03% loss in value from the close of the previous session of 239.65 in the interbank market.
The rupee is now at 0.23 rupees, short from an all-time low of 239.94 rupees on 28 July 2022.
The rupee, one of the worst currencies in emerging markets, has weakened nearly 9% this month due to a variety of factors.
Analyst Yousuf Rahman of KASB Securities told The News that debt service was one of the reasons the rupee fell. Because the total financial need for this year is about $32 billion.
Rahman also noted that the floods forced governments to import vegetables, grains and cotton to replace damaged crops. which increases the pressure on the rupee
“This has increased tension on the import bill. And there is also news that the dollar is constantly flowing out of the gray channel. especially through the Afghan border,” Rahman said.
He said the fundamentals and sentiment of the battered rupee would not improve. Until there is a stream of influx from the expected hostile country.
“Once receiving additional funding from the World Bank, ADB [Asian Development Bank]and allied countries The rupee could stabilize at 215 levels,” Rahman added.
A resurgence of the International Monetary Fund (IMF) bailout program and a $1.1 billion loan from the fund last month supported the rupee briefly in late August. However, the currency is struggling again.
“A strong dollar and high commodity prices affect regional and major currencies,” said Tresmark research head Komal Mansoor.
“[The] Indian rupees are also trading north. 80/dollar this week And they have spent $90 billion to protect an already stable currency. The yuan, the euro and sterling have all dropped to their lowest levels in years,” Mansoor said.
But the local currency hitting new lows is worrying for the economy. Because it shows that the government is unable to stabilize foreign exchange reserves and reverse negative emotions. he added “Some two directions are important to a currency.”