Rupee falls to all-time low of 299.01 against dollar

KARACHI: Pakistani rupee fell to all-time low against the US dollar in the interbank market on Tuesday and depreciated by Rs1.88 (-0.63 percent).
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 297.13 against the dollar in the interbank market and closed at 299.01. Earlier, the rupee hit a record all-time low at Rs298.93 per dollar in the interbank market on May 11 in the backdrop of a deepening political turmoil and widespread law and order disturbances after former prime minister Imran Khan’s arrest in a case.The rupee depreciated by Rs7.27 against the US dollar during the week. During the current fiscal year 2023-24, Pakistani rupee has shed Rs13.02 against the US dollar in the interbank market, while it plummeted by Rs71.58 against the greenback in the current year.
Similarly, the local unit depreciated against the greenback in the open market by Rs2 (-0.65 percent). The rupee was quoted in the range of 306-309 against the dollar in the open market as compared to 304-307 a session earlier. In the black market/Hundi, the dollar was traded at Rs323 against Rs321 a session earlier.
According to currency experts, the demand for the dollar remained high as imports are opening up gradually. They said the rupee’s recent decline can be attributed to the removal of restrictions on letters of credit (LCs), which has led to an increased demand for dollars and subsequently weakened the rupee. They said that the local unit continues to face immense pressure amid political uncertainty surrounding the general elections, which is causing turbulence in local markets.-TLTP