The Pakistani rupee fell for the sixth consecutive session against the US dollar, and depreciated 0.53% in the interbank market on Tuesday.
According to the State Bank of Pakistan (SBP), the rupiah closed at 220.88 after depreciating Rs1.17 or 0.53%. The rupee has depreciated cumulatively by 3.09 rupees or 1.4% over the past six trading sessions.
On Tuesday, the rupee fell for the fifth consecutive session against the US dollar and closed at 219.71 after depreciating Re0.82 or 0.37%.
According to market experts, the weakness of the local currency is attributable to the decrease in reserves and the lack of confirmation of foreign inflows.
In an interview with BloombergFinance Minister Ishaq Dar said the rupee was “heavily undervalued”.
“It’s due to speculation – and some market players are responsible for that,” he added.
Globally, the dollar held near a 32-year high against the yen on Wednesday, while rallying from a two-week low against a basket of major peers as traders gauged improvement in the risk sentiment against the prospect of aggressive Federal Reserve rate hikes.
The dollar index – which measures the currency against six peers including the yen, the pound and the euro – rose slightly to 112.01, after falling to the lowest since October 6 at 111.76 day to day.
Oil prices, a key determinant of the currency peg, edged higher on Wednesday amid caution as bullish signals such as falling US crude inventories and a generally undersupplied market were countered by bearish factors. such as uncertain Chinese demand growth and lower gas prices.