Pakistani rupee may lose more ground next week: Report

Amid high inflation in the country, a new report revealed that the Pakistani rupee is expected to fall further against the US dollar next week, local media reported on Sunday.

The rupee continued to suffer from higher demand for dollars from importers, particularly in the absence of inflows from the central bank and other sellers. In addition, a wide trade deficit caused by hefty imports and global oil prices were a threat to currency stability, according to The News Internation.

The rupee closed at a record low of 177.71 to the dollar on Friday. It depreciated by 0.69 per cent during the outgoing week.

"There is still some demand pressure and that could let the rupee weaken further unless there is liquidity intervention in the foreign exchange market. The rupee seems to trade at 178-179 levels in days ahead," the newspaper quoting a currency dealer reported.

In the last seven months, the local unit has lost Rs 25.72 against the USD, according to the currency experts.

Separately, the State Bank of Pakistan (SBP) said the foreign exchange reserves held by the central bank rose 16.6 per cent. On December 3, the foreign reserves of the SBP were recorded at USD 18,658.2 million, up USD 2,648 million, compared with USD 16,010.3 million on November 26, reported Geo News.

(ANI)

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