The continuously free-falling rupee neared its all-time-low record value and reached Rs238.91 per dollar on Tuesday in the interbank market, according to the State Bank of Pakistan (SBP).
According to SBP, the rupee that had closed at Rs237.91 per dollar yesterday depreciated by 0.42 percent more today.
The rupee has been nearing its record low value of Rs239.94 that was registered on July 28.
General Secretary of Exchange Companies Association of Pakistan Zafar Paracha told local media that banks’ speculations were the reason behind the declining rupee. He also claimed that so far, within two months, banks had made a profit worth a year.
Instead of saving face by going after the few exchange companies, the State Bank of Pakistan (SBP) should take action against banks, Paracha said. He added that the trade and immigration policies for Iran and Afghanistan needed to be revisited as these policies had been eating up our foreign reserves and revenues.
Noting the receipt of IMF loan tranche, Saudi announcement of $3 billion rollover and Asian Development Bank’s (ADB) announcement of program as positives, Paracha said that he was expecting the rupee to start gaining.
Other economic experts have said that the strengthening of dollar against all major currencies in the international market has caused the rupee to fall. They have also said that the pressure on rupee was increasing because of expected higher imports as a result of the floods.
Karachi Chamber of Commerce and Industry President Muhammad Idrees has said that there has been an increase in prices of raw materials because of the rising dollar. He said that this will further influence export targets negatively.