Rupee drops for third consecutive day

Pakistani currency dropped Rs0.05 and closed at Rs278.73 against the US dollar in the inter-bank market on Wednesday, maintaining its losing streak for the third consecutive day amid conflicting reports about the resumption of smuggling of foreign currencies from Pakistan to neighbouring countries. According to the State Bank of Pakistan (SBP) data, the rupee has cumulatively dropped Rs0.23 in the past three working days compared to Rs278.50/$ on Friday. Reports suggest illegal currency traders like Hawala-Hundi system operators have re-established their network in the country after a hiatus of several months. The illegal network operators are giving an additional Rs4 for a dollar, luring people to sell the foreign currency to them.