KARACHI: The Pakistani rupee depreciated nearly 0.05% against the US dollar in the inter-bank market during the early hours of trading on Monday. At around 10:30am, the currency was being quoted at 283.72, a decrease of Re0.13.
During the previous week, the rupee had inched up 0.08% against the US dollar. However, the currency struggled to find direction amid a current account surplus and a pending bailout programme with the International Monetary Fund (IMF).
Experts believe that there are several reasons for the Pakistani rupee losing value against the US dollar. Firstly, Pakistan is facing an acute balance of payments crisis and is desperate to secure external financing, with less than three weeks’ worth of import cover in its foreign exchange reserves.
Secondly, the depreciation of the local currency is taking place due to rising import bills. The country’s import bill has been increasing due to the rise in global commodity prices.
On Friday, the rupee had closed at 283.59 in the inter-bank market. The slight decline in the rupee’s value against the US dollar is expected to have an impact on the country’s imports and exports, as well as inflation. The government and the State Bank of Pakistan will need to take measures to stabilize the rupee and prevent further depreciation.
