Dollar records decline in interbank in pakistan trade

 Dollar records decline in interbank in pakistan trade

The Pakistani rupee is trading at 201.4 against the US dollar. Experts say the market sentiment is negative.

 Dollar records decline in interbank in pakistan trade

 

KARACHI: The interbank market witnessed “volatility” within the early morning trade when the US dollar recorded a pointy decline before recovering within an hour, a forex trader said Wednesday.

The rupee opened at 201.50 today then suddenly went all the way down to 199.40, recovered sharply within half-hour and commenced trading at 201.20, "said Zafar Paracha, General Secretary, Exchange Companies Association of Pakistan (ECAP) during a statement. ۔

“There isn't any sense of this volatility. this is often causing discomfort within the market, shaking the arrogance of importer, exporter and foreign investors,” he added.

The local unit was being traded at 201.4 against the US dollar at 10:15am, in keeping with the Forex Association of Pakistan. It ended at 202.83 each day earlier.

The rupee fell to a record low on Tuesday, weighed down by payments for imports, foreign debt, and dividend repatriation, consistent with traders and analysts.

Speaking to Geo.tv, AA Commodities Director Adnan Agar said that the market sentiment is negative because of uncertainty regarding the continued financial crisis.

 Dollar records decline in interbank in pakistan trade

The analyst added that the market is volatile as investors are reacting to any or all developments regarding the upcoming budget, the International money (IMF) programme, and other economic indicators.

Agar added that the currency is anticipated to stay volatile as oil prices are rising within the international market meanwhile, the govt is anticipated to extend taxes within the upcoming federal allow the following yr 2022-23 which is able to increase inflation.

The analyst also highlighted that the value of petrol is anticipated to extend to Rs250-260 per litre which might negatively affect the rupee-dollar parity.