KARACHI: The rupee depreciated for the 13th consecutive session against the US dollar in the interbank market on Wednesday.

Surprisingly, the Exchange Companies Association of Pakistan (ECAP) did not report any change in the dollar rate at Rs287.50.

The dollar settled at Rs286.90 after appreciating by 51 paise in the interbank market, reported the State Bank of Pakistan (SBP).

The regular weakening is eroding confidence in the local currency which was gained after the crackdown and other administrative measures. Bankers said the shortage of dollars is the real cause of concern.

A senior banker said the hopes are now attached to the higher remittances in October. The State Bank is expected to release the figures for remittances in a few days.

However, most of the currency experts see no hope from the exports. They said the high inflation and interest rate would not help the manufacturing sector to compete in the international market.

Experts said there is no panic in the market while the talks with the IMF signalled positive signs but the demand is increasing which may surpass the imports target set for FY24.

Published in Dawn, November 9th, 2023