Pak Rupee has further depreciated against the U.S dollar. The rupee has weakened by around 1.12% or Rs1.75 in the inter-bank market. Pak Rupee closed at Rs158.25 on Tuesday.
On Monday, the Rupee stood at Rs156.5 as per forex.pk. After this drop, the two-day fall in the rupee value went to 2.3%. It was Rs154.7 on Friday, but now it has reached Rs158.25.
Forex Association of Pakistan President Malik Bostan said, “The rupee has been volatile since Monday as foreigners have begun pulling out their investments from govt securities in Pakistan.”
Adding, “In addition to this, rumors are doing rounds in the market that the State Bank of Pakistan will slash the key policy rate next week, hence, investors have started pulling out their money.”
He said that the three-month treasury bills are maturing and so Pakistan has started payments to the holders of those securities.
He also said that the global economy is suffering due to coronavirus, thus Pakistan is also feeling the impact. The association president said that all rupee selling is witnessed in the interbank market. Virtually there is no selling in the open market.
Bostan hoped that fluctuation in the rupee value will end soon and rupee will go back to its previous level.
Topline Securities Director Research Syed Atif Zafar said the declines in the rupee value was due to divestment of hot foreign money injected into T-bills.
Adding, “There has been a constant outflow for the past six weeks and hence it is being reflected in the rupee value.”
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