Karachi: The rupee continues to depreciate against the dollar in the interbank and open markets.
Due to factors such as tension on the political horizon over the issue of caretaker prime minister and leaving the foreign currency exchange rate to market forces under the strict conditions of the IMF, the US dollar continued to depreciate against the rupee on Tuesday, due to which the interbank rate of the dollar exceeded 288 rupees and the open rate exceeded 293 rupees.
In the beginning of the business period in the interbank market, the value of the dollar had fallen by 21 paise to the level of 287.71 rupees, but during this period, the dollar advanced due to intermittent demand from the trade and industrial sectors.
The interbank rate of the dollar had reached the level of 288.77 rupees with an increase of 81 paise at one point, however, the value of the dollar in the interbank market closed at the level of 288.52 rupees with an increase of 60 paise.
In the open currency market, the value of the dollar increased by 1 rupee to reach the level of 294 rupees during the business period. At the end of the business, the value of the dollar increased by 50 paise to close at 293.50 rupees in the open market.
Market sources say that uncertainty over future conditions coupled with requisite demand for new import LCs and containers berthed at ports has also led to dollar advances from panic buying by trade and industrial sectors.
Experts say that even before the formation of the caretaker government, the tensions between the political parties in the PDM government are directly impacting the value of the rupee as the rupee is currently a weak commodity.
It is worth mentioning here that before the IMF agreement, economic analysts were predicting that the rupee will gradually devalue against the dollar and reach 290-300 rupees by December 2023.
In the context of the ongoing situation in the foreign exchange markets, these predictions of the analysts are proving to be correct, which is the reason why the rupee is gradually devaluing against the dollar after joining the IMF program.
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