The Pakistani rupee fell by Rs1.88 against the US dollar during interbank trade on Tuesday, extending its losses from the previous week.

The greenback was changing hands in the interbank market at a record Rs299.01 at closing.

In the open market, the dollar was changing hands for Rs306, according to the Exchange Companies Association of Pakistan.

The local currency closed at Rs297.13 on Monday, rising by Rs1.35 from last week’s close of Rs295.78, according to data shared by the Exchange Companies Association of Pakistan (ECAP).

Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves. The removal of those restrictions beginning in June was a condition of a $3 billion International Monetary Fund (IMF) loan programme to help the crisis-ridden economy.

On May 11, it logged a record closing low of 298.93.

Financial consulting firm Alpha Beta Core chief executive Khurram Schehzad said the IMF’s condition for its bailout to ensure open market-interbank parity had resulted in the rupee’s “excessive” weakening.

“As I said earlier, the policy of following open market parity (with 1.25pc prem) was flawed, thus difficult to sustain,” he told Dawn.com. “This has been witnessed in [how] the open market [is] driving the formal market (interbank mkt), and excessively weakening the PKR.”

Tahir Abbas, head of research at Arif Habib, a Karachi-based brokerage company, told Reuters that he expected the rupee to trade between 295 and 305 to the dollar for the time being.

“The declining trend is mainly attributable to the ease off in the import restrictions coupled with clearance of backlog for goods and services,” he said.

He added that multinational corporations were able to repatriate some profits, furthering rupee outflows.


Additional input by Reuters.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...