The rupee picked up where it left off on Friday, gaining an additional 42 paisa against the US dollar on Monday as the greenback was quoted at below the pre-pandemic level of 154.24 (March 6, 2020).
The dollar was being quoted at 154.15/154.20 (11:30 PST) compared to Friday’s closing value of Rs154.58.
The US dollar had lost 42 paisa against the rupee on Friday in the interbank market as currency experts believed that the downward trend would continue and the greenback would soon reach the pre-Covid level.
The dollar has depreciated more than 7.5 per cent against the rupee since August 2020.
Market sources offered a number of reasons that included higher inflows compared to lower outflows as reflected from the current account surplus during the eight months of the current fiscal year.
However, currency dealers in the interbank market had said the depreciation was witnessed since the demand for dollars from importers had slowed down.
“At the same time, exporters have been selling their dollar holdings in large numbers reducing prices and creating space for the local currency to acquire more against the greenback,” said Atif Ahmed, a currency dealer in the interbank market.
He had said it was difficult to assess how far the dollar would depreciate but the coming months would see more inflow and more depreciation. During Ramazan and the Eid season, overseas Pakistanis used to send more money to their families and give Zakat to charity organisations.
“The dollar buying in the open market has touched the lowest level and we have to deposit more than 90 per cent [of dollars] we buy from customers in banks,” said Malik Bostan, president of the Forex Association of Pakistan.