KARACHI -- Despite support from the International Monetary Fund and the Asian Development Bank worth billions of dollars, the local currency has lost 2.8 per cent against the dollar in June.
The dollar hit an intraday high of Rs167.80 in the interbank and finally closed at Rs167.65 on Tuesday, posting a jump of Rs1.07 compared to the opening value.
During this month, the dollar has gained Rs4.55 or 2.8pc. The weak currency usually supports exports but demand in the international market has drastically shrunk due to Covid-19.
Forex Association of Pakistan President Malik Bostan said low remittances, falling exports and higher demand for the dollar have collectively hit the exchange rate.
According to him, the open market sold dollars at Rs167.80 but there was no extra demand, adding that most of the liquidity there is being deposited in the banks.
Bankers believe that due to the recent shortage of petroleum products in the country, the government-owned company and private sector rushed to import fuel.
'I am not sure which sector is buying more dollars but we believe the crude oil import has suddenly increased its demand to buy higher quantities of petroleum products,' said a currency dealer.
'One of the major reasons behind the quick appreciation of the dollar is the sharp decline of over 55 per cent in exports during 10MFY20, giving no hope for improvement in the situation,' said a senior banker.
Currency dealers were also making speculations about the loss of jobs in the oil-based Gulf countries which would ultimately hit the inflow of dollars from the region...