PKR slides by Rs1.35 against dollar in interbank

The Pakistani rupee fell by Rs1.35 against the US dollar during interbank trade on Monday, extending its losses from the previous week. The local currency closed at Rs297.13, rising by Rs1.35 from the last week’s close of Rs295.78, according to data shared by the Exchange Companies Association of Pakistan (ECAP). In the open market, the dollar was changing hands for Rs307. According to Khurram Schehzad, the chief executive of financial consultancy firm Alpha Beta Core, imports were opening up gradually and letters of credit (LCs) were being retired. “Oil is also going up in the international markets and besides, we need to repay foreign debt as well,” he said. Tresmark’s Head of Strategy, Komal Mansoor, was of the opinion that rupee depreciation was a “common outcome” of caretaker set-up. “[It is] more so exacerbated now because of the current account deficit and payment of import backlog,” she said, adding that the market was bracing for the local currency to cross Rs300 against the greenback.