Rupee depreciates to 5-week low

Pakistani currency on Thursday hit a five-week low at Rs278.48 against the US dollar in the inter-bank market, maintaining its downward trend over the past one month amid speculation about lower supply of the foreign currency and an uptick in its demand in the market. According to the State Bank of Pakistan’s (SBP) data, the rupee shrank 0.03%, or Rs0.09, and closed at Rs278.48 against the greenback. It has cumulatively dropped 0.52%, or Rs1.45, in the past one month as compared to the five-and-a-half-month high close of Rs277.03/$ reached in the last week of March 2024. The downtrend indicates that foreign currency demand for import payments has remained higher than its supply. Recent trade data showed that Pakistan’s imports were gradually increasing, generating more demand for dollars in the banking system.