The rupee has fallen further to Rs169.63 against the US dollar in the inter-bank market on Wednesday.
This fresh depreciation came a day after the rupee had touched an all-time low of Rs168.94. According to the State Bank of Pakistan.
AA Gold Commodities Director Adnan Agar said that the dismal number of the current account for July 2021, with additional anticipation of further deficit in August 2021 had mounted the recent pressure on the national currency.
Agar said, “Moreover, Pakistan’s imports are rising steeply while exports are growing at a much slower pace hence the country requires a higher amount of dollars to pay for inward shipments,”
Agar expected the State Bank of Pakistan to intervene once the rupee reaches Rs171 against the greenback. Moreover, he expected the local currency to trade at Rs174-175 by year-end.
Analysts also mentioned the uncertain Afghanistan situation as a factor of the depreciation as the demand for dollars had increased in the neighboring countries.
Agar expected the State Bank of Pakistan to intervene once the rupee reaches Rs171 against the greenback. Moreover, he expected the local currency to trade at Rs174-175 by year-end.
The rupee has maintained a downturn since May 2021 when it marked a 22-month high of Rs152.27, losing Rs17.36 in the past four months.
The August import payments have crossed the historic high of $6.4 billion and on the other side, the earnings from the export remained sluggishly low at $2.2 billion.
The increase in international commodity prices suggests that our imports will remain high in the future as well.
