Rupee falls, closes just shy of record low

KARACHI: The dollar on Wednesday lost 0.29% against the US dollar in the inter-bank market to settle at Rs166.87. The local currency closed at Rs166.39 against the greenback on Tuesday.

Speaking to Geo.tv, Alpha Beta Core CEO Khurram Schehzad said: “The currency is depreciating because of the situation in Afghanistan.”

According to market players, a tumultuous political situation in Afghanistan is creating pressure on the local currency.

Schehzad predicted that the rupee is expected to lose value in the short run because of geopolitical risk uncertainty.

Currency dealers were of the view that the ongoing situation in the neighbouring country is creating an additional demand of dollars from Pakistan.

Meanwhile, the analyst said that rising imports are also adding fuel to the downward trend.

“The local currency will remain volatile for the next two-three months, stability would be seen towards the end of this year,” he maintained.

On August 27, 2020, the rupee hit a record low, closing at Rs167.43 to the US dollar.