The rupee was being traded at Rs238 in the early morning trade. It closed at 236.84 on September 16, the State Bank of Pakistan reported.

Currency experts have alleged that smuggling of the US currency, uncertainty in the country and strict laws for exchange companies were the primary reasons for the depreciation of the rupee. Floods led by heavy rains have damaged Pakistan’s crops, prompting it to import onion, tomatoes and other items from Iran and Afghanistan.

Read more: Why is the value of the dollar increasing this time?

However, they said that it has opened the grey market (illegal trade of dollars) for the dealers. Coupled with the uncertainty, it was building pressure on the local currency.

Saudi Arabia confirms rollover of $3b deposit

The Saudi Fund for Development (SFD) has confirmed the rollover of a $3 billion deposit for one year, the SBP said on Sunday.

The deposit was set to mature on December 5, 2022, the central bank said, adding that the deposit was placed with SBP and was part of its forex reserves. “This reflects continuing strong and special relationship between KSA and Pakistan.”

The agreement for the deposit was originally signed in November 2021 by SFD Chief Executive Officer Sultan Bin Abdul Rahman Al-Marshad and the then-SBP Governor Dr Reza Baqir in Karachi with an aim to improve the SBP’s foreign exchange reserves.

Last year, the kingdom had agreed to revive its financial support to Pakistan during former prime minister Imran Khan’s visit. The rollover includes $3 billion in safe deposits and $1.2 billion worth of oil supplies on deferred payments.

The story will be updated till the market closes.