The rupee depreciated by 29 paise against the dollar to close at Rs278.22 in the interbank market on Monday against the previous day’s closing of Rs277.93.

According to the Forex Association of Pakistan, the buying and selling rates of the dollar in the open market stood at Rs278 and Rs280.7 respectively.

The price of the Euro decreased by Rs5.19 to close at Rs296.42 against the last-day closing of Rs301.61, according to the State Bank of Pakistan (SBP).

The Japanese Yen came down by two paise and closed at Rs1.80, whereas a decrease of Rs4.51 was seen in the exchange rate of the British Pound, which was traded at Rs347.18 compared to the last closing of Rs351.69.

The Emirates Dirham and the Saudi Riyal increased by five paise each to close at Rs75.73 and Rs74.14 respectively.

A report by Goldman Sachs in March this year made a similar prediction for the rupee.

Goldman Sachs had said that the rupee was “nearly 20% undervalued on a 12-month horizon and offers about 26% nominal carry”.

“We think the intersection of undervaluation, carry and the latest continued but slow disinflation motivates our constructive view on the PKR,” the report had said.