- The Pakistani rupee (PKR) has suffered a significant decline against the US dollar, according to the country's central bank.
- On Tuesday PKR depreciated by 3.78 PKR, or about 1.34%, against the US dollar, official figures showed.
- The political and economic instability is causing uncertainty in the business environment, resulting in a shortage of the greenback in the market.
- Meanwhile, the Indian rupee depreciated 8 paise to 82.12 against the US dollar in early trade on Wednesday tracking the strength of the American currency in the overseas markets.
- Traders said domestic equity benchmarks scaling all-time high levels and sustained foreign fund inflows boosted investor sentiments and restricted the depreciating bias of the rupee.
The Pakistani rupee (PKR) has suffered a significant decline against the US dollar, according to the country's central bank.
The State Bank of Pakistan (SBP) said the greenback traded at 283.04 PKR in the interbank market on Tuesday, Xinhua news agency reported.
The U.S. dollar closed at 279.26 PKR on Monday.
On the second working day of the week, the local currency depreciated by 3.78 PKR, or about 1.34%, against the US dollar, official figures showed.
Over the past few weeks, the PKR went through a strengthening streak after Pakistan's agreement with the International Monetary Fund followed by commercial loans from foreign countries.
However, the political and economic instability is causing uncertainty in the business environment, resulting in a shortage of the greenback in the market.
The local currency is expected to weaken further in the coming days amid the loan repayments which Pakistan has to pay in the near future, according to market analysts.
Indian rupee depreciates
Meanwhile in India, the rupee depreciated 8 paise to 82.12 against the US dollar in early trade on Wednesday tracking the strength of the American currency in the overseas markets.
Traders said domestic equity benchmarks scaling all-time high levels and sustained foreign fund inflows boosted investor sentiments and restricted the depreciating bias.
At the interbank foreign exchange, the domestic unit opened at 82.08, then touched 82.12, registering a decline of 8 paise over its last close.
On Tuesday, the rupee had settled at 82.04 against the dollar.
The rupee opened a bit lower as the Reserve Bank of India (RBI) continues its US dollar buying spree below 82, Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07% to 100.01 on good retail sales data from the US.
Brent crude futures, the global oil benchmark, fell marginally by 0.31% to $79.38 per barrel.
In the domestic equity market, the 30-share BSE
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹2,115.84 crore, according to exchange data.
(With inputs from PTI, IANS)