Pakistani Rupee lost 39 paisas against the US Dollar in the interbank market today. PKR closed at Rs. 159.81 against the greenback on Tuesday, as compared to Rs. 159.42 on Monday.
The Rupee, on Monday, saw a moderate gain of 4 paisas against the USD after bouncing back to the Rs. 159 level last week, having crossed Rs. 160 during the same week.
Around the turn of the week, experts believe that in the coming sessions, the rupee will stay close to similar levels as last week. Analysts expect the rupee to trade in the range of 159 and 161 in the near-term, but the local currency may fluctuate due to several reasons.
For starters, the currency moves are likely to be affected by the second wave of the coronavirus pandemic. The virus surge and its impact on exports, remittances, and demand will determine the future course of the exchange rate. The rupee may face downside pressure if the macroeconomic fundamentals deteriorate owing to the spread of the outbreak.
Other factors, such as fiscal reforms, uninterrupted flow of liquidity, may also contribute to the volatility of PKR against USD. IMF and FATF can also impact the exchange rate movement.
PKR also fell against other major currencies today, with 54 paisas lost against the Euro and Rs. 1.4 lost against the GBP.
However, concerning the US Dollar, there is hope that inflows such as remittances and enthusiastic response in Roshan Digital Account and Naya Pakistan Certificates will play a vital role in stabilizing the exchange rate.