Dollars strengthens by 92 paisa against Rupee in interbank market

The exchange rate of Pakistani rupee declined by 92 paisa against the US dollar in the interbank on Tuesday.

The greenback is being traded at Rs 165 on the second day of the business week. In four days, the dollar became expensive by 4 rupees 8 paisa.

According to Forex dealers, Banks bought dollars to meet the demand of the corporates, while imports also came to the market for making their payments. This puts pressure on the rupee.

The currency is also pressed down by lower foreign exchange inflows from exports earnings and workers’ payments.

Dealers said they expect the currency to decrease further due to weak supplies and high demand for the US currency.

Traders said the pressure arising from servicing debt could diminish the value of the rupee and lead to a further cut in the foreign exchange reserves in the subsequent weeks.

Pakistan’s foreign exchange reserves declined to $18.597 billion as of May 21 from $18.618 billion a week ago.

The foreign exchange reserves held by the State Bank of Pakistan fell to $12.073 billion from $12.129 billion.