On Tuesday, the Rupee hit a new all-time low, declining by 0.63% against the US dollar in the interbank market. This is primarily due to relaxed import restrictions surging the dollar demand.
The Rupee ended the trading day at 299.01 against the dollar, marking a decrease of 1.88, as stated by the State Bank of Pakistan (SBP). The previous record was 298.93 on May 11.
Tahir Abbas from Arif Habib anticipated that the rupee would oscillate between 295 and 305 against the dollar in the foreseeable future. “This dip is a result of eased import restrictions and the clearing of past dues for goods and services,” Abbas explained. He also mentioned the impact of multinational companies repatriating profits, increasing rupee outflow.
AA Commodities Director, Adnan Agar, shared that the weakening of the rupee largely stems from political uncertainties. Concerns about potential election delays, which could hinder commitments from global entities like the IMF, play a significant role. Agar stated, “With political unpredictability and a temporary administrative system in place, investment and lending concerns become paramount.” He emphasized that the rupee will continue to be influenced by the clarity, or lack thereof, in the political landscape.
