US dollar smashes Pakistani rupee by Rs3.78 in interbank market

Published: 08:44 PM, 18 Jul, 2023
Business
US dollar smashes Pakistani rupee by Rs3.78 in interbank market

The Pakistani rupee suffered its third consecutive loss as the US dollar rocketed in interbank trading on Tuesday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan (SBP), the local currency depreciated massively by Rs3.78 against the greenback which concluded the day at Rs283.04.

At close on Monday, the Pakistani rupee had settled at 279.26, a decrease of Rs1.67, as per the State Bank of Pakistan (SBP).

After massive inflows of $4.2 billion from Saudi Arabia, the United Arab Emirates and the International Monetary Fund (IMF), the rupee was expected to gain some value but contrary to market expectations, the US dollar had swiftly regained strength.

The foreign exchange reserves of the SBP have almost doubled to $8.7 billion with the latest inflows in the last week, but the higher demand for greenbacks kept the price high.

Despite rising foreign exchange reserves, the importers are still not free to open letters of credit (LCs). A change has come, and banks have been asked by the SBP to open LCs only if they have a sufficient amount of dollars. The imports were practically restricted. Earlier, importers were allowed to arrange dollars on their own.

 

Reporter Ashraf Khan

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