Rupee once again crosses Rs175 barrier against US dollar

• Rupee closes the day at Rs175.47 against the US dollar in the inter-bank market.
• Dealers expect rupee to remain range-bound against US dollar this week.
• "The dollar demand from importers will be a key driver for the rupee’s future direction,” dealer says.

KARACHI: Defying market expectations of currency stability following the receipt of $1 billion from the International Monetary Fund (IMF), the rupee lost ground against foreign currencies as it once again crossed Rs175 barrier against the US dollar in the inter-bank market on Monday.

According to data released by the State Bank of Pakistan (SBP), with a fresh decline of 0.43%, the local currency closed the day at Rs175.47 against the US dollar in the inter-bank market.

Currency dealers expect rupee to remain range-bound against the dollar this week amid healthy inflows and lack of fresh triggers.

With the fresh decrease of 0.43%, the Pakistani rupee has depreciated by 11.38% (or Rs17.93) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

The rupee had maintained a downward trend for the past nine months. It has lost 15.23% (or Rs23.2) to date, compared to the record high of Rs152.27 recorded in May 2021.

“The rupee seems to be stuck in a range-bound trade unless domestic or global events flare up. We expect the rupee to remain around current levels in the coming days,” a foreign exchange dealer said.

“The dollar demand from importers, especially for energy imports given the spike in oil prices, will be a key driver for the rupee’s future direction,” he added.

Earlier, Pakistan-Kuwait Investment Company's Head of Research and Development Samiullah Tariq had said: “Rupee is in correction mode.” Tariq had predicted that the Pakistani currency should trade in the range of Rs174-176.