The Pakistani rupee experienced a slight depreciation against the US dollar in interbank trading on Wednesday (March 6), closing at Rs279.35, marking a decrease of 04 paisa from the previous day’s closing.
In the open market, the buying and selling rates of the dollar were reported at Rs279.2 and Rs282.1, respectively, according to Forex Association of Pakistan (FAP).
This depreciation is attributed to increased demand for the US dollar driven by import requirements and corporate payments. The pressure on the local currency has intensified due to a reduction in foreign exchange reserves. Market analysts emphasise the need for close monitoring of import and export balances, along with prudent fiscal policies, to mitigate external factors’ impact on the exchange rate. Policymakers are urged to focus on bolstering foreign exchange reserves to enhance the country’s resilience to economic shocks.
In addition to the US dollar, the prices of other currencies also saw fluctuations. The euro increased by 32 paisa to close at Rs303.40, the Japanese yen gained 01 paisa to close at Rs186, and the British pound witnessed an increase of 93 paisa, closing at Rs355.05. Similarly, the Emirates dirham and the Saudi riyal both increased by 01 paisa each, closing at Rs76.05 and Rs74.48, respectively.