The Pakistani rupee depreciated 0.33% in the first hours of trading on Wednesday, recording a slight loss against the US dollar in the interbank market.
In intraday trading, the rupee depreciated by Re0.74 or 0.33% to 220.45 at roughly 11:10 a.m. against the dollar.
The rupee lost value against the US dollar on Tuesday for the fifth consecutive session, closing at 219.71 after losing Re0.82 (0.37%).
According to market experts, the local currency’s weakness is caused by declining reserves and a lack of evidence of foreign capital inflows.
Ishaq Dar, the finance minister, claimed that the rupee has been “heavily undervalued” in a Bloomberg interview.
It is due to speculation, and certain market participants are to blame for that, he continued.
In relation to a basket of global peers, the dollar edged up from a two-week low on Wednesday as traders evaluated the potential of rapid Federal Reserve rate hikes against an improvement in risk sentiment.
The dollar index, which compares the greenback to six other currencies, including the yen, the pound, and the euro, moved up to 112.01 after overnight falling to its lowest level since October 6 at 111.76.
Oil prices, a key determinant of currency parity, rose in early Asian trade on Wednesday, paring losses from the previous session, as concern over tight supplies following reports of lower inventories in the United States offset fears of lower demand from top oil importer China.
