The Pakistani Rupee has continued to lose ground against the US Dollar (USD to PKR) for the sixth consecutive day amid increasing pressure on the local currency and a shortage of greenback in the market.
According to the State Bank of Pakistan (SBP), the Pakistani Rupee (PKR) closed at Rs. 228.18 at the interbank market on 9 September 2022 (Friday), which was a depreciation of Rs. 2.76 (1.21%) compared to Thursday, when the local currency closed at Rs. 225.42 against the US Dollar (USD).
Meanwhile, the US Dollar was being traded at Rs. 234 to Rs. 236 in the open market during the intraday trading on Friday as per the data provided by the Forex Association of Pakistan (FAP).
In total, the Pakistani Rupee has fallen by Rs. 9.21 or 4.2% against the US Dollar since the start of this week due to shortage of foreign currency in the market as there is a higher demand ever since the government lifted the ban on import of luxury and non-essential goods.
Furthermore, the rise in remittances and exports did not increase to the required amount, which has caused increasing pressure on the local currency and a disruption in the supply-demand position of the US Dollar (USD).
The severe flooding across the country has also caused increasing pressure on the Rupee (PKR) as cost of damage and devastation has surpassed the International Monetary Fund (IMF) loan disbursement.
According to the details, the economic damage caused by the floods has reached almost $18 billion.