On Monday, the rupee was under pressure to start the week, shedding Rs2.01 to the US dollar in the interbank market.The local currency decreased from Friday’s closing rate of Rs214.65 to Saturday’s closing rate of Rs216.66 per dollar, according to the State Bank of Pakistan.
FAP Chairman Malik Bostan claimed that the recent decision to ease the import restriction on luxury goods as well as pressure from exporters requesting the government to maintain the dollar rate at Rs216 were the causes of today’s decline in the value of the rupee.
Commercial banks are also purchasing dollars at high rates, which raises the value of the US currency. To stop the rise in the value of the dollar, the central bank must exert control over commercial banks in this area, Bostan continued.Financial market expert Komal Mansoor said traders were concerned not only about today’s announcement of the policy rate but also about foreign exchange reserves, inflation, and the local currency. Tresmark is a web-based terminal for financial markets.
“Political clamour is making their problems worse. There is a significant backlog of imports, RDA [Roshan Digital Account] inflows have slowed, and IMF input has essentially been taken into account (though they will be financed by inflows). As a result, the rupee may fluctuate between 220-225 with brief outruns on either side, according to her.
