The rupee lost Rs1.78 in early trading in the interbank market on Thursday, rates issued by the Forex Association of Pakistan (FAP) showed.

At around 11:26am, the dollar was being traded at Rs225.20 compared to yesterday’s closing rate of Rs223.42.

The previous session also saw the dollar gain against the rupee by Rs2.

FAP Chairman Malik Bostan said the dollar had been strengthening globally, having gained against 40 currencies for weeks, and its impact was being seen in Pakistan’s currency market as well.

Bostan said the rupee was Rs8 costlier in the open market and urged the government to take measures to narrow down this difference.

“The government should use its diplomatic sources to end the UAE government’s regulation mandating travellers from Pakistan to carry 5,000 dirhams in cash,” he added.

He went on to say that if the promised $4 billion from friendly countries arrives immediately in Pakistan, it would alleviate the pressure on the rupee and help stabilise its value.

More to follow.

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