Rupee falls to all-time low of Rs204 against US dollar
The Pakistani rupee depreciated sharply on Monday by Rs1.85 to hit an all-time low against the US dollar from last week’s close of Rs202.35.
Malik Bostan, chairman of the Pakistan Forex Association, has linked the high flight of the dollar to the end of the current financial year.
He said that one of the reasons for the rise in value of dollar against rupee was the end of fiscal year 21-2022 in June and payments of oil import bill.
He said that the pressure on the rupee could continue till the agreement with the IMF reaches the final stages, while there is a significant difference in the import and export targets set for the next financial year, which indicates that further loans will be required next year to reduce this gap.
Currency dealer Zafar Paracha said that one of the reasons for the rise in the value of the dollar was that foreign companies were sending out their profits at the end of the financial year in June.
He said that these activities have created a gap between the supply and demand of dollars, adding that the SBP should oblige exporters to bring export earnings into the country so that the supply of dollars could increase.
