KARACHI: In the interbank market on Wednesday, Pakistan’s currency fell 0.04% (or Rs0.10) to Rs217.88 against the US dollar, breaking a streak of 13 straight working days of appreciation.
According to the central bank, the local currency nearly reached a one-and-a-half-month high on Tuesday, closing at Rs217.79.
After falling to a recent all-time low of Rs239.94 last month, it has since recovered a total of 10.01% (or Rs21.92) during the last 13 consecutive working days as of Tuesday.
After worker remittances decreased 12.3% year over year to $2.4 billion and export profits in September, the currency depreciated for the first time in the previous two weeks on Wednesday.
Importers were urged to purchase dollars at the current rate before it became expensive by the shift in interbank market mood brought about by the decline in inflows.
The rupee had won the title of best-performing currency in the world last week after recording one of the biggest increases of 3.9% in the week ended October 7 when compared to all other currencies on the Bloomberg terminal.
The overabundance of dollars on the market aided in the rupee’s 13-day surge. The slow data on worker remittances caused the supply of foreign cash to slow down.
Economic researcher Ali Khizar stated that the local unit’s appreciation trend has “arrested” because it recently closed inside a range of 217.8-218.