KARACHI: The fluctuation in the demand and supply of the US dollar in the currency market contributed to the Pakistani rupee’s sustained decline versus the greenback in the interbank market. The State Bank of Pakistan (SBP) reported that the rupee depreciated by over Re1 (0.40%), or closing at 219.86 against Friday’s close of 218.98.
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Dealers and traders predict that the rupee would fluctuate between 218 and 19 in the next days.
The demand from importers and the inflows of [supply] from exporters and remitters will have an impact on the currency movement during the week.
However, the negative economic effects of the country’s terrible floods and the soaring inflation rate would undermine confidence in the rupee.As the margin between rates in the interbank market reduced, the movement of the rupee on the open market also attracted attention.
As Pakistan tries to purchase more basic goods in the wake of the country’s floods, analysts anticipate some pressure on the rupee. Many people also think that the demand may be restrained, which would keep the current account balance in check.
