Dollar upsurge against rupee continues

• Tuesday’s closing rate was Rs167.63 in the inter-bank market compared to Rs167.23 recorded on Monday.
• Pakistani currency is expected to depreciate until there is more clarity on remittances and current account data. 
• Earlier, Forex Association of Pakistan President Malik Bostan said that the forecast for the rupee depends on the situation in Afghanistan.

KARACHI: The upsurge of the US dollar against the rupee continued on Tuesday with the local currency losing 40 paisas compared to the previous close on the back of geopolitical tensions.

Tuesday’s closing rate was Rs167.63 in the inter-bank market compared to Rs167.23 recorded on Monday.

The Pakistani currency depreciated around 0.24% on Tuesday.

Earlier, speaking to Geo.tv, Forex Association of Pakistan President Malik Bostan had said that the influx of dollars into Afghanistan following the Taliban takeover has increased pressure on the rupee.

Bostan also added that the widening gap between the imports and exports of Pakistan has mounted pressure on the local currency against the greenback.

The analyst had said that the forecast for the rupee depends on the situation in Afghanistan, however, most probably the currency will further depreciate during the week.”

Tresmark, in a client note on Saturday, said: “While rupee trading above 170 is bad for optics, the resultant surge in inflation will be worse and will put policymakers under pressure to hike interest rates at a time when the ruling party is looking to tame rising consumer prices.”

Pakistani currency is expected to depreciate until there is more clarity on remittances and current account data.