The Pak Rupee has weakened further against the US dollar and reached Rs.161.30. The rupee has gone down by Rs1.44 in intra-day trade in the inter-bank market.
Taurus Securities’ analyst Mustafa Mustansir said, “The rupee came under pressure [against the US dollar] on the forecast for a further pickup in inflation.”
It is expected that State Bank of Pakistan (SBP) will hike important interest rate by 100 basis points to restraint the future inflation.
Since Monday last week, Pak Rupee cumulatively dropped Rs2.54 or 1.61%. On Monday (yesterday) rupee closed at Rs159.86.
As per the analyst, the rupee weakening was expected as it recovered Rs5-6 to reach Rs157 in the prior week.
“The rupee has lost on renewed buying in dollars at a discounted price.”
Adding, “The central bank may come into action again when rupee advances its march towards around Rs162-165.”
Due to scheduled repayment of foreign debt around $37-38 billion, the rupee would remain under pressure.
Going forward, the rupee would remain under pressure due to worth around over the next couple of years.
Mustansir said, “The pressure further mounted on rupee when an international court of the law imposed penalty worth $6 billion in Pakistan in Reko Diq case, a couple of days ago.”