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Friday, September 30, 2022
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HomeBusinessFalling rupee crosses 220 per dollar in interbank market

Falling rupee crosses 220 per dollar in interbank market

The fall of the rupee continued as the local currency reached Rs220.66 per dollar in the interbank market against previous day’s closing value of Rs219.41.

According to the State Bank of Pakistan, the rupee exhibited a 0.57 percent decrease in its value or a depreciation of 1.25.

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On the other hand, dollar was being traded at Rs230 in the open market, according to Forex Association of Pakistan (FAP). The purchase rate of dollar remained at Rs228 whereas it was being sold at Rs230 in the open market, according to figures on the FAP website.

Since the start of this week, the rupee has lost against the greenback.

According to analysts and economic experts, the main reason for declining rupee has been the delay in International Monetary Fund (IMF) loan tranche of $1.17 billion under the seventh and eighth review.

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The executive board of IMF is expected to meet on August 29 for final approval of loan tranche for Pakistan.

Dr. Khaqan, former advisor to the Federal Finance Ministry, has said that dollar strengthening globally along with recent political scenario of the country has contributed to the depreciation of rupee.

Abbasi further said that nervousness was being caused in the market due to political reasons along with depleting foreign reserves of Pakistan.

Foreign reserves of Pakistan stand at $7.8 billion, which is hardly enough for over a month’s imports.

Zafar Paracha, secretary general of Exchange Companies Association of Pakistan (ECAP), dollar’s smuggling into Afghanistan has also caused the foreign currency’s rate to swell.

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