The rupee fell further against the US dollar on Friday, hitting 228 in the inter-bank market as political uncertainty and fall in foreign exchange reserves took a toll on the currency.

During intra-day trading, the rupee was quoted at 229, a decline of Rs2.19 or 0.95%, against the US dollar.

By the day’s end, the dollar was at Rs228.37, depreciating 0.68 per cent from the SBP’s closing rate.

On Thursday, the rupee had settled at 226.81, a fall of Rs1.89 or 0.83%, against the greenback, amid renewed concerns over inflation and cost of doing business.

The decline in currency comes amid louder political noise ahead of a crucial Punjab Assembly session that is scheduled to meet today to elect the next chief minister of the country’s largest province.

“Sanity in Punjab Assembly today is not only crucial for political but rupee stability as well,” tweeted Abid Qaiyum Suleri, Executive Director at the Sustainable Development Policy Institute (SPDI).

Meanwhile, Finance Minister Miftah Ismail expressed hope that demand for the US dollar would decrease in the next few days following reduced imports, and the situation in terms of the exchange rate would reverse.

The finance minister said what has happened during the last three days was primarily because of political turmoil.

The story was originally published in Business Recorder on July 22, 2022.