Karachi: Rupee eased against dollar as it recovered 40 paisas in the open market and 33 paisas in the interbank to close at 93.20 and 92.14 on Friday.
Dealers said that the demand of the dollar went down as the regional and international market will remain closed on the account of weekly holidays. Hence, the rupee recovered its value for short period.
They said the dollar value have been appreciating for couple of months in the global currency market, which impacted negatively on different currency such as Pound and Euro that depreciated 5 percent. Besides the Bangladesh currency Tikka and Indian rupees were also declined its value by 5 percent in the past two weeks.
On the contrary, the rupee has depreciated by 7 percent so far since the beginning of the current financial year on widening current account deficit and swelling imports bill.
Analysts said that the rupee will continue to loss its value against dollar in the coming months as far as the foreign exchange reserves through remittances, foreign investments and aids might be resisting its depreciation.
The weak economic fundamentals including widening current account deficit and excessive government borrowing from the central bank were the chief reasons for depreciation. While these factors continue to remain intact, the principal repayments for IMF Standby Program have aggravated this situation, especially due to absence of foreign flows.
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