The Pakistani rupee weakened further against the US dollar in the open market on Monday, while the local currency also sustained losses in the inter-bank market.
During the day, currency dealers Business Recorder reached out to said the rupee was quoted at 286 for selling and 283 for buying purposes for customers.
However, the currency closed at 284 for buying and 287 for selling purposes, according to data provided by the Exchange Companies Association of Pakistan (ECAP).
During the previous week, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 282.00 and 285.50, respectively, as per ECAP data.
In the inter-bank market, the rupee closed the session at the 285.29 level against the greenback.
The gap between rates in the inter-bank and open markets is required to be less than 1.25% under one of the structural benchmarks set by the International Monetary Fund (IMF).
Meanwhile, authorities in Pakistan and the IMF mission, led by Nathan Porter, are engaged in crucial discussions on the first review of the $3 billion Stand-by-Arrangement (SBA).
The rupee’s slide is attributed to the increased demand for foreign currency in the domestic economy, primarily driven by higher sales of automobiles, cement, and petroleum oil products, and the repatriation of profits by foreign companies operating in the country.
Industrialists have expressed concern that the depreciation of the local currency is detrimental to the country’s economy.
Muhammad Ali Sheikh, a member of Federation of Pakistan Chambers of Commerce & Industries (FPCCI), said that the massive fall of rupee value continued to damage the economy.
He urged the government to control volatility of the rupee against the US dollar, as industrial revival and economic growth are not possible without stability of the local currency.
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