Rupee hits three-month low as dollar demand spikes

Pakistani currency depreciated Rs0.11 and hit over three-month low at Rs278.62 against the US dollar in the inter-bank market on Monday in the wake of a surge in demand for the foreign currency in the domestic market. According to the State Bank of Pakistan’s (SBP) data, the rupee had closed at Rs278.51 against the greenback on Friday. Exchange Companies Association of Pakistan (ECAP), however, reported an uptick of Rs0.05 in the rupee value, which settled at Rs280.32/$ in the open market compared to Rs280.37/$ on Friday. The latest drop in the inter-bank currency market came after the central bank unexpectedly reported a current account deficit of $270 million for May 2024 against high expectations for a surplus in line with the trend seen over the past few months.