Dollar gains 07 paisas against rupee

ISLAMABAD: The exchange rate of Pakistan rupee depreciated by 07 paisas on Monday against the US dollar in interbank trading and closed at Rs168.09 as compared to the previous day's closing of Rs168.02.

According to Forex Association of Pakistan (FAP), the buying and selling rates of dollar in the open market were recorded at Rs168.6 and Rs169.4 respectively.

The price of euro was depreciated by 88 paisas and closed at Rs198.17 against the last day's trading of Rs199.05, the State Bank of Pakistan reported.

The Japanese Yen remained unchanged to close at Rs1.52, whereas a decline of Rs 1.01 was witnessed in the exchange rate of British Pound, which was traded at Rs 232.18 as compared to its last closing of Rs 233.19. The exchange rates of Emirates Dirham and Saudi Riyal increased by 02 paisas each to close at Rs 45.76 and Rs 44.81 respectively. The Pakistan rupee is in free fall, and there seems a reluctance to do anything about it.

The rupee lost considerably in the previous week, and the weekend seems likely to cause only a temporary break. The inexorable downward slide of the rupee is likely to continue. The State Bank of Pakistan has ruled out the possibility of borrowing and pouring the dollars thus obtained into the market, a tactic famously used by the previous government's financial czar, Ishaq Dar. The other option, which can be taken when the Monetary Policy Committee meets, is to raise interest rates. That will attract only 'funny money' which will flow out as soon as it finds a more attractive interest rate abroad.