In interbank transactions, the dollar rises to Rs202.40.

The rupee lost momentum against the US dollar for the 14th consecutive session on Thursday, depreciating by 50 paisa in the interbank market.

The dollar was trading at Rs202.40 at roughly 1:30pm, according to the Forex Association of Pakistan (FAP), after gaining versus Wednesday’s closing of Rs201.90 yesterday, according to State Bank of Pakistan (SBP) data.

Around 1:30pm, the greenback was trading at Rs203.50 on the open market.

The rupee’s ongoing depreciation since May 10 has been linked mostly to the country’s mounting import bill, expanding current account deficit, and depletion of foreign exchange reserves.

Since the PML-N-led coalition government won power on April 11, when the dollar was worth Rs182.30, the rupee has risen in value.

Malik Bostan, chairman of the Forex Association of Pakistan, told Dawn.com that the dollar’s rise was due to the country’s political problems. “If politicians do not work together to tackle these challenges, capital transfers will accelerate, enhancing the value of the dollar.”

He went on to say that the rupee was also under pressure due to declining foreign exchange reserves and more than $10 billion in external obligations due.

“Debt from international financial institutions might relieve rupee pressure,” Bostan remarked.

Furthermore, FAP Secretary General Zafar Paracha stated yesterday that investors were optimistic about the government’s negotiations with the IMF. “However, they refused to release the monies until gasoline subsidies were removed.”

“This development has also intensified the pressure on the rupee,” he said.