The devaluation of the Pakistani rupee versus the US dollar continued with both regional and global factors favoring the dollar.
On Thursday, according to the State Bank of Pakistan (SBP), the local currency dropped in value from the previous session’s close of 223.42 to 225.42 in the interbank market.
The rupee has fallen by around 6.82 versus the dollar since the start of this week’s trading and appears to be following the same path as when it reached 239.37 on July 28, two months ago.
Traders and dealers predicted the rupee to fluctuate between 218 and 19 in the upcoming days.
Experts have said that the damage caused by flooding would potentially put the rupee under pressure. Initial estimates place the economic damage caused by the severe floods in Pakistan at a staggering $10 to $12.5 billion, and the government also intends to drastically reduce the Public Sector Development Program (PSDP).
Uncertainty in the political sphere, loss of confidence, high foreign exchange and reduced inflows are considered by experts to be the causes of fall in value of rupee.
