KARACHI: The US dollar on Friday once again rose past the 210-rupee mark in the interbank market after the market’s excitement over the resumption of the International Monetary Fund (IMF) programme dialled down. The rupee lost Rs1.1 against the dollar in interbank trade on Friday with the greenback closing at 210.95.
According to the State Bank of Pakistan (SBP), the rupee depreciated 0.55 per cent compared to yesterday’s close of Rs209.8.
Mettis Global Director Saad Bin Naseer noted that the rupee had appreciated slightly when the market opened on Friday but came under pressure because of an increase in the dollar’s demand after banks started clearing pending payments.
The pressure has continued since then, he said, and cited depleting reserves and “insignificant” remittances and export payments.
While there is some confidence because of the IMF deal, the situation would not improve until the country’s reserves were stable, he added.
The analyst, however, added that if the oil prices in the international market drop to $60-70 per barrel then it would benefit Pakistan but this seems difficult as Brent crude is declining because of calls of recession from across the globe. “Once this subsides, oil prices will bounce back.”
Meanwhile, Exchange Companies Association of Pakistan General Secretary Zafar Paracha termed the dollar’s rise as “unexpected”.
“We (currency dealers) do not understand the reason for the [rupee’s] decline because we were expecting it to rise by Rs2-3 since the IMF staff agreement has been done.”
