The Pakistan rupee closed the day at Rs226.41 against US dollar after depreciating by four paisa (0.02 percent) in interbank on Thursday after making some gains during trading.
At one point, it seemed that the rupee would end the losing streak but the upward movement was reversed and the local currency again ended the session with some depreciation.
The day started with the exchange rate for dollar at Rs226.37. However, the rupee couldn’t sustain the momentum after trades were reported for Rs226.90 and ended the day at Rs226.41.
Meanwhile, the gap between interbank and open market rates persists as the money exchange companies were trading the dollar for Rs233 to Rs236.
Smuggling of US dollars into Afghanistan has been the chief factor causing the alarming depreciation of rupee – a fact repeatedly acknowledged by Finance Minister Ishaq Dar. However, the government remains unable to the check the practice.
Earlier this week, those in the currency market too raised the matter, saying Pakistan was experiencing large-scale outflow of greenback to the neighbouring country after the Taliban’s takeover of Kabul last year.
It had eroded Pakistan’s foreign exchange reserves with the exchange rate going down thanks to smuggling, fake imports of dollars and Islamabad’s negligence towards the issue, said Malik Bostan – who is the chairman of Exchange Companies Association of Pakistan.
The latest decline in the rupee comes after the local currency was down 22 paisa against the US dollar on Wednesday.
During the current fiscal year, the rupee has lost Rs21.56 or 9.51 percent against the dollar, while the corresponding figures stands at Rs49.89 or 22.02 percent since January 1.