US dollar weakens by Rs1.30 in open market

KARACHI: The Pakistani rupee strengthened against foreign currencies in the open market on Saturday.

The US dollar fell by Rs1.30 to Rs117.30 in the open market, after peaking in the recent months.

The euro weakened by Rs2 to hit Rs140, while the pound fell by Rs2 to Rs159.50.

President of the Forex Association of Pakistan, Malik Bostan told Geo News that a greater supply from the State Bank and reduced demand for the dollar led to a decline in its value in the open market, and a subsequent decline in other foreign currencies. 

Since December last year, the rupee has cumulatively shed almost 9% of its value. The State Bank of Pakistan has attributed the rupee’s decline to supply and demand dynamics of foreign exchange in the inter-bank market.

The country’s trade deficit has stood at almost $20 billion in the past eight months, according to statistics issued by the State Bank. As of last month, Pakistan’s imports amounted up to $35 billion while the exports stood at a meager $16 billion, leaving a huge gap between the payments received and made.