The Pakistani rupee continues to fall against the US dollar as the local currency depreciated by 0.68 percent on Friday, hitting another low of Rs228.37 in the interbank market, whereas KSE-100 index managed to close above 40,000 points.
According to the State Bank of Pakistan (SBP), the rupee came down by Rs1.56 on Friday against the closing rate of Thursday at Rs226.81 against the dollar.
Meanwhile, KSE-100 plunged 290 points as markets opened on Friday. According to the PSX website, stocks started in green, but later the index came down 290.75 points (39,541) at 11:30am from yesterday’s close of 39,831.75. However, it made a recovery, reaching 39,726.48 before the prayer break.
By closing time, the index managed to cross the 40,000 mark, closing at 40,140.09 points.
During the whole week, the rupee continued its declining trend against the US dollar. On Monday, it reached Rs215.2, Tuesday Rs222, Wednesday Rs224, Thursday Rs226.81 and finally reached Rs228.37 on Friday, showing a new highest-ever rate every consecutive day.
Stock market players have attributed the behavior of market as unfairly overblown saying that the current economic situation of the country was affecting the stock market.
Economists have said that the rupee depreciation was a bitter fact but not an exception because all currencies have shown depreciation against the dollar.
Experts have called for SBP’s intervention, warning of rupee further squeezing otherwise.
The current uncertain political situation has been attributed by experts to the depreciation. They have also suggested the government to approach exchange rate companies for their recommendations along with reduction in imports to the level of exports.
The total liquid foreign reserves of Pakistan have been stated to be at $15.24 billion. The SBP stated in a tweet on July 22 that the total liquid foreign reserves of the country were $15.24 billion on July 15.
