Pakistan rupee holds ground against US dollar

The US dollar gained another five paisa against the Pakistan rupee in interbank trading as local currency continues depreciating.

When the session closed, the dollar was available for Rs224.7 compared with the previous closing of Rs224.65.

On the other hand, the exchange rate for dollar in open market was in a range of for Rs231.75 to Rs234.06.

In international market, the US dollar steadied on Tuesday ahead of the release of inflation data and the final Federal Reserve meeting of the year, with investors waiting to update interest rate outlooks.

Bleak macroeconomic indicators coupled with political uncertainty and muted concerns over the country’s economic outlook is keeping the local unit under pressure.

Meanwhile, the black market (Hundi and Hawala) has become very attractive with the US dollar touching the Rs255 mark.

It is in this context that Finance Minister Ishaq Dar again said on Monday that the local currency was being smuggled to a neighbouring country, as he did not name Afghanistan.

He was speaking at a press conference held by Prime Minister Shehbaz Sharif in Islamabad in which they discussed different political and economic issues being faced by the country.

Dar said the ministries concerned had been directed at a recent meeting to check the trend and seal the borders if necessary.

Since then several persons dealing with foreign currency were arrested with their businesses sealed in Peshawar and DI Khan.   

But the melting foreign exchange reserves in the absence of inflows have reportedly created chaos in the market and, as a result of this, the market is facing a dollar shortage.

During the current financial year (FYTD), the rupee has so far lost Rs19.85 or 8.83 percent in value against the US dollar while the loss stands at Rs48.23 or 21.44 percent since January 1 (CYTD).

On the other hand, the rupee was down by 81 paisa against pound sterling which was traded for Rs275.85 and 68 paisa against the euro after it reached the value of Rs237.17.


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