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The rupee, which has been falling against the dollar since Sept 2, lost another 96 paise during morning trade in the interbank market on Monday.
At 12:20pm, the PKR had fallen to Rs237.8 per dollar — a depreciation of 0.4 per cent from Friday’s close of Rs236.84.
Data shared by the Forex Association of Pakistan (FAP) showed that the PKR was changing hands at Rs242.4 per dollar in the open market at the same time.
Saad bin Naseer, director of financial data and analytics portal Mettis Global, said the decline was reflective of the overall demand and supply situation in the market. The rupee did not react to news of the Saudi Fund for Development rolling over a $3 billion deposit for a year because the development “did not improve the liquidity of the dollar in the market”, he added.
Read: Banks sending dollars out via credit cards
Naseer said the government would have to step in to stop further decline in the rupee’s value. He recommended that the government decrease the 120-day period given to exporters to bring their proceeds into the country.
Many exporters hold their payments abroad, anticipating that the greenback’s value will rise in Pakistan, at which point them will bring back their money. This often exacerbates dollar shortage in the country.
Naseer also urged the government to “ensure the exchange rate is fixed for exporters on the day they realise their proceeds”, a step that will discourage them from holding on to dollars for longer periods in anticipation of making profit on exchange rate fluctuation.
According to Mettis Global, the PKR lost Rs8.7 against the greenback last week. The local currency’s value has declined 28.99pc during the last 52 weeks. It had reached a record low of 239.94 on July 28.
