KARACHI: The dollar continued to fall against the local currency as it slipped by Rs1.20 to Rs166.23 in the interbank market on Monday while total decline in the last three sessions was 1.3 per cent.

The State Bank of Pakistan reported the dollar closed at Rs166.23 but bankers dealing in the currency market said the greenback was sold as low as Rs165.80 intraday.

For the last three sessions, the dollar has been losing against the rupee and fell by about Rs2.20 or 1.3pc since Thursday.

Bankers said the dollar has been on a downward trajectory due to increase in supply by the exporters, who have sold around $150 million during the last three sessions.

Due to heavy rains in the country, the opening of Letter of Credits has also dropped in August which means fewer dollars were bought by the importers.

July data shows that the imports have been increasing.

On the other hand, some experts said the greenback has been losing against major currencies in the international market which is also a reason the rupee has posted gains during the last three days.

“Since July1, the dollar has lost 11pc against the British pound and 7pc against the Euro,” said Forex Association of Pakistan President Malik Bostan.

According to daily data compiled by him, the devastating impact of Covid-19 in the United States has started appearing in the form of dismal performance of economy and its currency.

As per a recent report of New York Times, the US economy was under crippling pressure as it fell by 9.5pc in the second quarter, which erased almost five years of growth.

It also said the Britain, whose economy has taken the hardest hit from the pandemic in Europe, fared even worse, with the government reporting a staggering 20.4pc quarterly decline. Despite this serious fall, the dollar has lost against pound.

The open market reported dollar trading at Rs167 which may see more decline if the interbank exchange rate goes in favour of the rupee.

Published in Dawn, September 1st, 2020