Rupee-falls-to-a-new-low-at-Rs-170-48-The-Correspondent

The rupee registered a marginal decline of Rs0.78 against US dollar in the interbank market on Wednesday.

According to the State Bank of Pakistan (SBP), the Pakistani rupee lost 78 paisas against the greenback in the interbank market to close at Rs221.43, down in value from yesterday’s close of 220.65.

In the open market, the dollar is sold between Rs226 and Rs228, said forex dealers.

The downtrend against the dollar is due to ongoing political uncertainty in the country that took a toll on the investor’s sentiment.

The news regarding expected inflows from the International Monetary Fund (IMF) — after the ninth review scheduled this month — and China failed to entice players.

Arif Habib Limited, in a note, said volatility was the order of the exchange rate in recent weeks amid debt obligations over the next 12 months with global conditions continuing to be tough.

“In particular, effective negotiation with bilateral and multilateral partners, especially post floods will help stabilise the parity,” the brokerage said.

The US dollar also weakened in the international market as investors await US Federal Reserve’s policy decision amid speculation it might indicate a slowdown in future rate hikes.

The rupee may further depreciate as Consumer Price Index (CPI) based inflation increased to 26.6% year-on-year in October 2022 against 23.2% in September and 9.2% in October 2021, according to the Pakistan Bureau of Statistics.

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