The rupee began the week under pressure on Monday, losing Rs2.01 against the US dollar in the interbank market.

According to the State Bank of Pakistan, the local currency closed at Rs216.66 per dollar versus Friday’s closing rate of Rs214.65.

FAP Chairman Malik Bostan said today’s fall in the value of the rupee came on the back of the recent decision to lift the ban on imports of luxury items coupled with pressure from exporters urging the government to keep the dollar rate around Rs216.

“Commercial banks are also buying dollars at high rates, which is causing the greenback’s value to rise. The central bank must control commercial banks in this regard to halt the rise in the dollar’s value,” Bostan added.

Komal Mansoor, head of Research at Tresmark, a web-based terminal for financial markets, said traders were worried not only about the policy rate announcement today but also about foreign exchange reserves, inflation and the local currency.

“Political noise is adding to their woes. RDA [Roshan Digital Account] inflows have slowed down, IMF inflow has largely been factored in and there is a long pipeline of imports (though they will be financed by inflows). Due to this, rupee may oscillate between 220-225 with temporary outruns on either side,” she said.