Karachi: Rupee continued to sustain heavy losses against dollar in inter-bank market, closing session with another 2.61 percent fall. As per State Bank of Pakistan unit fell Rs 7.03 against dollar.

On Friday, it settled at 262.6 after fall of Rs 7.17 or 2.73 percent. Monday’s fall takes combined depreciation across just three sessions to over 14 percent.

Analysts believe rupee will see stability as gap among three simultaneous currency markets narrows amid hope that arrival of International Monetary Fund mission for ninth review would lead to revival of bailout programme.

Free-floating exchange rate was among key prior conditions of IMF before it looks to complete ninth review. Mustafa Pasha, Chief Investment Officer at Lakson Investments said rupee is currently undervalued due to dollar shortage. “As per Real Effective Exchange Rate (REER), rupee remains undervalued,” Pasha told. “Issue is dollar shortage, which is causing panic.”

US dollar index, which measures greenback against basket of currencies, rose 0.03 percent to 101.92, edging away from last week’s eight-month low of 101.50.

Published in The Daily National Courier, January, 31 2023

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