Pakistani rupee hammers US dollar for 9th consecutive session

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KARACHI
The Pakistani rupee has cemented its value for the ninth consecutive session against the US dollar in the interbank market on Monday. According to the State Bank of Pakistan, the local currency appreciated by 90 paisas against the greenback which ended the day at Rs295.95.
On Friday last, the Pakistani rupee had appreciated by 0.37% in the interbank market as it had settled at Rs296.85 after an increase of Rs1.11. The frequent appreciation of the local currency since the start of the current month has strengthened the perception in the currency market that the greenback would depreciate to a certain level required to stabilise the exchange rate.
It is believed that the ongoing crackdown to check forex smuggling would keep the dollar rate on the lower side in the open market while the interbank has substantial liquidity as exporters have started selling their dollar holdings.
Having touched a peak of Rs307, the dollar has lost about Rs11 or 3.65 percent in the interbank market creating fear among the exporters who had been getting benefits of a weaker rupee. This falling trend has compelled the exporters to liquidate their dollar holdings.
Currency dealers said the higher liquidity was one of the reasons for dollar depreciation but they were not sure how long this trend would persist. — DNA