Pakistan’s rupee continued to weaken against the US dollar in the inter-bank market, and was hovering around the Rs235-236 level on Thursday.

At around 12:48pm, the rupee was being quoted at 235.70, a depreciation of Rs1.38 or 0.59% against the greenback, during intra day trading.

On Wednesday, Pakistan’s rupee had sustained losses against the US dollar for the ninth successive session, settling with a depreciation of 1.02% at 234.32 in the inter bank market as the dollar strengthened globally. At the same time, investors remained wary of a rising import bill.

The local currency has come under renewed pressure this month, which has been attributed to the strengthening US dollar index, alongside a rise in import of food related items.

Economists list factors behind pressure on PKR

In a video message, Exchange Companies Association of Pakistan (ECAP) General Secretary, Zafar Paracha said the respite in rupee’s value, which came from International Monetary Fund (IMF) funding, was short lived.

“Moreover, funding promised by friendly countries after the IMF programme resumption has yet to be realised,” he said, adding that floods have devastated the local economy and inflation could increase further.

Paracha informed that the gap offered in the open market and inter bank is reducing, after ECAP itself imposed a cap on the rates being offered.

Internationally, the dollar stood near recent peaks on Thursday as markets increased bets the Fed has more work to do in its aggressive tightening streak to curb red hot inflation, while wariness of intervention kept the yen steady.

The US dollar index, which measures the greenback against a basket of currencies, was up 0.09% to 109.7, not far off its two decade peak of 110.79.

Moreover, oil prices, a key determinant of currency parity, edged higher on Thursday as the market balanced weak demand with supply disruption amid a looming rail stoppage in the United States, the world’s biggest crude consumer.