The US dollar kept on rising against a declining Pakistani rupee, reaching 323 during open-market trading as the difference with the inter-bank rate extended to more than 5%.
On Tuesday, the rupee was quoted at 323 for selling and 320 for buying purposes for clients in the open market, down from 318-321 the previous day.
According to the State Bank of Pakistan, the local currency continued under pressure in the interbank market, closing at more than 303.
Experts say the rupee is under pressure due to increased imports as restrictions ease, a widening current account deficit, and declining foreign exchange reserves with no inflows in sight.
Under one of the International Monetary Fund’s (IMF) structural standards, the difference between interbank and open market rates must be less than 1.25%.
However, the gap – called the premium by the IMF in its country report on Pakistan released after the Executive Board’s acceptance of the Stand-By Arrangement – has been rising in recent weeks.