The rupee witnessed pressure on Monday after a period of relative calm for the past six months, as it fell by Rs3.65 against the dollar to Rs157.9 in the interbank market.
This represented a jump of 2.36 per cent as compared to dollar trading at Rs154.25 on Friday, according to rates provided by the Exchange Companies of Pakistan.
“For the past few days, foreigners have been unloading their positions in the stock market [$16.7 million last week] and repatriating back the dollars, which has put pressure on the interbank rate,” said Exchange Companies of Pakistan former general secretary Zafar Paracha. “There is no fundamental change behind the sudden increase in greenback and is part of the general panic in markets worldwide due to the coronavirus. But given the State Bank’s strong control mechanisms, it would be back within a few days,” he adds.