Continual surge in dollar demand for import payments weigh down on local unit; inflows, however, are not sufficient.
Financial analyst says nominal fluctuations are normal.
Rupee has depreciated by Rs20.35 since July 1, 2021.
KARACHI: The rupee remained stable against the US dollar at Rs177.98 in the inter-bank market on Thursday.
According to the State Bank of Pakistan (SBP), the local currency dropped to an all-time low of Rs177.98 a day earlier after the central bank raised its policy rate by 100 basis points to 9.75%.
A continual surge in the dollar demand for import payments weighed down on the local unit. Inflows, which were available in the market, were not sufficient to cover the demand side.
“There was a mismatch between the demand and the supply of the greenback. The central bank refrained from intervening in the market to lend support to the currency,” a forex trader had said.
Earlier, speaking to Geo.tv, Alpha Beta Core CEO Khurram Schehzad had said that the nominal fluctuations are normal.
“It is important for the currency to remain stable,” he had added.
The rupee has maintained the downtrend for the past seven months. It has lost 16.82% (or Rs25.62) to date, compared to the 22-month high of Rs152.27 recorded on May 14.
Meanwhile, the rupee has depreciated by 12.91% (or Rs20.35) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
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