Rupee at Its Lowest in Weeks Against the US Dollar After Another Big Drop

The Pakistan Rupee (PKR) is continuing its downward movement against the US Dollar (USD) in the currency market for the seventh day in a row, depreciating by 36 paisas in the interbank currency market against the greenback today. It closed at Rs. 154.49 to the USD at the end of the trading day today (Tuesday, 27 April) as compared to Rs. 154.13 to the USD on Monday (26 April). This marks the PKR to be at a four-week low against the USD. Before today PKR was around the same level (at Rs. 154.58 to the USD) on March 26, 2021. ALSO READ Rupee Drops to Another Low Against US Dollar as Rapid Depreciation Continues Analysts believe that amid the higher dollar demand from importers, the local unit is likely to remain under pressure because of import payments. They stated that the PKR had lost ground despite the rising remittances from overseas Pakistanis during the holy month of Ramazan. The demand for Dollar from importers has been strong in recent sessions. Multinational firms are also seeking the greenback for repatriation of profits and dividends, which is also putting pressure on the local unit. The former Treasury Head at Chase Manhattan Bank said on Monday that the PKR is likely to stay in the Rs. 153.25-154.40 band against the USD. “Further weakness is only possible on a break of [Rs.] 154.15 or else more gains. This will be a good opportunity for the exporters to book their profit, as a weak Rupee stance is likely to be short-lived,” he added. The PKR also posted blanket losses against other major currencies in the interbank currency market, except a moderate gain of eight paisas against the Pound Sterling (GBP). It deteriorated slightly by two paisas against the Euro, by 32 paisas against the Australian Dollar (AUD), and notably by 89 paisas against the Canadian Dollar (CAD). ALSO READ Rupee Suffers Another Huge Loss Against Most Major Currencies The PKR also posted losses of nine paisas each against the UAE Dirham (AED) and the Saudi Riyal (SAR) in the interbank market today.