The rupee, which has been losing value versus the dollar since September 2, lost an additional 96 pence on Monday morning’s interbank trade. At 12:20 PM, the PKR had depreciated to Rs237.8 per $1, down 0.4% from Friday’s close of Rs236.84.
According to information provided by the Forex Association of Pakistan (FAP), the PKR was trading at Rs242.4 per dollar at the time. The reduction was a reflection of the market’s general demand and supply dynamics.
The Saudi Fund for Development rolling over a $3 billion deposit for a year had no impact on the rupee, according to him, because the move “did not boost the liquidity of the dollar in the market.”
Naseer said that intervention from the government will be necessary to halt further depreciation of the currency. He suggested that the 120-day window that exporters have to bring their profits back into the nation be shortened. Since there is a shortage in Pakistan, they end up delaying payments there for a lengthy time in order to profit.
In order to prevent exporters from keeping dollars for longer periods of time in the hope of profiting from exchange rate fluctuations, he also encouraged the government to “guarantee the exchange rate is fixed for exporters on the day they realize their proceeds.”
Last week, the PKR fell by Rs8.7 against the US dollar. Over the last 52 weeks, the value of the local currency has decreased by 28.99%.