ISLAMABAD: The rupee continued to lose ground against the dollar on Monday, hitting a new low of Rs229.88 in the interbank market.
According to the Forex Association of Pakistan (FAP), the rupee lost Rs3.63 against Friday’s close of Rs228.37 to reach Rs232 around 1:30pm.
The dollar eventually closed at Rs229.99, with the local currency depreciating 0.66pc, according to data shared by the State Bank of Pakistan (SBP).
Mettis Global Director Saad Bin Naseer said that the rupee remained under pressure due to “political uncertainty” surrounding the run-off Punjab chief minister election.
“Meanwhile, on the demand front, importers have fast tracked opening of their letters of credit in view of the rupee’s fall,” he said, adding that exporters were also parking their funds abroad to maximise their returns.
“The government, in collaboration with the State Bank of Pakistan (SBP), should issue guidelines to ensure exporters convert their dollar earnings to rupees immediately after receiving payments,” he told media.
Delays by exporters in an effort to maximise their rupee earnings has wreaked havoc on the exchange rate causing a significant shortage of the greenback in the market, he said. –Agencies
