In the interbank market on Tuesday, the rupee declined by Rs2.1 versus the dollar, falling for the eighth straight session.
The local currency decreased by 0.91 percent from yesterday’s closure of Rs229.82 to conclude at Rs231.92 per $1.
The floods, according to FAP Chairman Malik Bostan, are putting pressure on the import bill, which is driving up demand for dollars. This year’s cotton and wheat crops will be smaller, which might raise import costs and upset the balance of payments.
According to him, the pressure could continue until friendly nations fulfil their former $4 billion commitment to the agreement with the International Monetary Fund.
Bostan warned that keeping the requirement that incoming travellers declare their foreign money could expand the gap between open and interbank prices. He continued, “The Ministry of Finance will have to address our concerns.
Abdullah Zaki, a former leader of the Karachi Chamber of Commerce and Industry (KCCI), added that the rupee’s value was falling following the floods.
He stated that daily changes in dollar rates were one of the problems that businessmen were dealing with. “How is import possible under these circumstances? The inflation rate may rise more if the exchange rate is not regulated.
