Pakistan Rupee looses against US dollar
KARACHI – US dollar gains more than one rupee in last two days in interbank and open money market mainly due to payments of import bills and opening of letters of credit.
The dollar closed at Rs 105.50 and Rs 108.55 in interbank and at Rs 105.50 and Rs 105.70 in open money market on Wednesday. On Monday, the green back had closed at Rs 104.49 and Rs 104.54 in interbank. It was traded at Rs 104.50 and Rs 104.70 in open money market.
A senior officer from State Bank of Pakistan attributed the increase in exchange value of US dollar to its demand and supply in the money market. “Rise in dollar value is market driven. There is nothing unusual,” he said. Many payments were pending which put sudden pressure on dollar. “You know, last Friday was also public holiday and the transactions were carried over to this week,” he said. He said that US currency might come down in next couple of days with return of money market to normalcy.
Forex Association of Pakistan (FAP) Chairman Malik Muhammad Bostan, while talking to a news agency here, said that the weakening of Pakistani Rupee might create problems for the government including loss of its credibility established after its long struggle and taking various important steps. He said that this would push high the import bills of the country including the petroleum products bill. This would increase inflation in the country and create more problems of the common man. Besides, it would discourage the industrialisation and development activities.
He mentioned that Pakistani Rupee had shed its value against US dollar to Rs 105.70 in the market against Rs 102 over last few weeks. He appreciated that State Bank of Pakistan on Wednesday warned importers to avoid opening of unnecessary letters of credit which puts undue pressure on US dollar. He urged that the government should be very rationale and show a balanced approach while going for devaluation of local currency.