The rupee depreciated for the second time against the US dollar after its appreciation streak ended on Wednesday, with the local currency closing at Rs214.95 in the interbank market.
According to State Bank of Pakistan (SBP), rupee depreciated by 0.03 percent or Rs0.07 on August 18 against the greenback.
Market experts have blamed exporters for pressurizing to maintain the local currency around Rs215 per dollar. A local media report cited Mettis Global Director Saad bin Naseer as saying that the value of rupee could rise sharply if imports kept falling and exports increased. He also said that it appeared as if maintaining rupee around current value was an understanding with the International Monetary Fund (IMF).
Zafar Paracha, general secretary of Exchange Companies Association of Pakistan, told local media that a delay in the release of IMF loan tranche had caused the pressure on rupee. He showed hope of a strengthened rupee after the IMF tranche is received.
Paracha also said that if the interest rate would be increased after the meeting of Monetary Policy Committee (MPC) of SBP on August 24, it would put pressure on the value of rupee, leading to a further decrease in its value.
After gaining 11.62 percent in 11 consecutive days, the rupee started declining on Wednesday. Since July 29, the rupee had been showing an upward trend in the interbank market and fell for the first time since on Wednesday.