KARACHI: Only a day after gaining some lost ground, the rupee on Monday resumed its slide against the United States dollar as it fell by Rs1.90 to reach Rs158.6 in the interbank market.
However, in the open market, the local currency recovered by Rs2 to stand at Rs156.5, as opposed to Friday’s closing of Rs158.5.
Since the beginning of the last week, the rupee began its downward journey against the greenback as it reached Rs159.30 by Thursday, compared to Monday’s opening value of Rs154.25 – representing a fall of Rs5.05 or 3.27 per cent.
However, the final day of the week recorded a sharp recovery of Rs2.6 to finally close at Rs156.7.
Forex Association of Pakistan President Malik Bostan had attributed that increase in rupee to the lack of demand for dollars among the foreigners, who he said didn’t book any forward rates as they turned to the sidelines due to the weekend.
Commenting on today’s movement, he explained: “As foreigners were allowed to liquidate even the unmatured positions in treasury bills, that has put pressure back on the dollar.”
However, he added, “the greenback outflows are from the interbank supply, not that of the State Bank reserves and thus should be a temporary phenomenon.”
The volatility in the currency market has also been in line with the equities as the Pakistan Stock Exchange on Monday was battered as the benchmark index was down over 2,400 in afternoon trading. Similarly, the rupee’s recovery on Friday had come on the back of modest gains in the stock exchange.