Matching losses in open market, rupee ended at Rs171.4
The US dollar maintained its gains in value against Pakistani rupee, beginning the trading week Rs0.52 higher at Rs169.6 on Monday.
It ended its bullish run at Rs169.08 on Friday last week.
Matching losses in the open market, rupee ended at Rs171.4 after posting a 40-paisa gain.
According to the State Bank of Pakistan (SBP), the rupee had dipped by 0.31%.
The fall in the value of Pakistani rupee began on May 14 when the US currency was valued at Rs152.28 in the inter-bank market, a report issued by the research department of Arif Habib Securities stated.
In recent days, rupee declined against US dollar by as much as 10.21%, the report said. Since June, the reduction was 7.11% while it shed 5.76% value since January.
The chairman of the Forex Association of Pakistan, Malik Bostan, maintained that the absence of dollar in Afghanistan was creating extraordinary pressure on Pakistani rupee as most of Kabul’s foreign currency assets and accounts remain frozen by the US and the UN.
He said that they still needed to buy essential foodstuff and most of it was being imported via Pakistan, bringing extra pressure on rupee, resulting in depleting foreign exchange reserves and attrition in the value of rupee against the US dollar.
The general secretary of the Exchange Companies Association, Zafar Paracha, also attributed the declining rupee value to a surge in exports. But, he said, the decrease in rupee value was also because a Sukuk bond would mature soon, requiring prompt payment in October. Banks, he said, were buying dollars from the open market in huge amounts. He also urged the government to ban the import of luxury items.
Pakistan received good response in the international market for its Sukuk bonds, the chief executive of Topline Securities, Mohammad Sohail said. He said that Pakistan should issue new Sukuk bonds worth $1.2 billion to protect the country from the pressure of Sukuk payment and resulting decline in rupee value.