The Pakistani rupee lost 1.02% during the trading session on Monday as it kept losing ground versus the US dollar in the interbank market.
The dollar was weakening by Rs2.7 when it was quoted at 270 during intraday trading at around 11:30 am.
The Pakistani rupee significantly declined against the US dollar on Friday, falling by Rs7.17 or 2.73% to settle at 262.6.
Ishaq Dar, the finance minister, announced on Sunday an Rs35 rise in the price of gasoline and diesel as part of the government’s effort to pass along the effects of the recent decline in the currency. Kerosene and light diesel oil rates were also raised by Rs 18 each. On Sunday, the new prices went into effect.
Additionally, the central bank disputed claims that a dollar price cap resulted in a $3 billion loss in exports and remittances on Sunday. The rupee lost 12.5% of its value over the previous week, but most of the loss occurred in the past two sessions, on Thursday and Friday, as the currency was ultimately given the dollar in the interbank market.
The sharp decline occurred as a result of the government allowing the exchange rate to float freely after keeping it under control, it appears, through administrative procedures for several weeks. This action increased the distance between the open- and black markets of foreign exchange.
As the gap between the three concurrent currency markets closes, analysts predict that the rupee will stabilize in the expectation that the arrival of the International Monetary Fund (IMF) mission for the ninth review would result in the resumption of the bailout program.