The US dollar surged above Rs210 versus the local currency in early morning interbank trade on Monday, continuing its upward trend.
The rupee depreciated dramatically against the dollar on Friday, falling to an all-time low of Rs210.3 against the dollar, according to the Forex Association of Pakistan (FAP). As of 10:30 a.m., the dollar was trading at Rs212 in the open market.
The rupee remained under pressure on the opening day of the week, according to Saeed Bin Naseer, director of Mettis Global, due to stories of banks running out of dollars over the weekend.
“The dearth of dollar at banks resulted in low or negative swap premiums as the country’s foreign exchange reserves continue to run dry,” he pointed out.
Naseer noted that an announcement from the IMF about the loan program’s revival or updates on Chinese inflows might assist stabilise the exchange rate.