A man is counting US dollars in this representational image. — AFP/File

The local currency depreciated against the US dollar for the second consecutive working day on Wednesday, closing at Rs294.93 in the interbank market.

The rupee fell by Rs3.24 against the US dollar in the interbank market.

A day earlier, the rupee closed at Rs300 in the open market while it lost Rs3.02 in its value against the greenback to close at Rs291.51 in the interbank market.

Currency dealers attributed the depreciation of the local currency mainly to the formation of a caretaker setup at the Centre as the interim rulers are expected to vigorously implement the International Monetary Fund (IMF) conditions for the $3 billion Stand-By Arrangement (SBA).

The latest devaluation of the rupee came a day after caretaker government led by Prime Minister Anwaar-ul-Haq Kakar approved a massive hike in the petroleum prices, taking petrol and diesel to historic high of 290.45 and 293.40 per litre, respectively.

Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha had earlier told Geo.tv that the fall in rupee value was expected after the caretaker government took charge.

He said the interim government is expected to take all measures in line with the conditions of the International Monetary Fund (IMF) that the elected regime avoided.

Moreover, he said the recent move to lift all restrictions on imports to meet IMF conditions was also one of the factors that led to the devaluation of the rupee as the move would put pressure on the country’s foreign exchange reserves.

Paracha added that the drop in remittances to Pakistan from its citizens working abroad to $2 billion in the first month of this fiscal year and falling exports were also the factors behind the rupee depreciation.

He said the rupee is expected to fall further against the US dollar to narrow the gap between open and interbank markets in line with the IMF condition.

The ECAP general secretary also blamed the presence of a grey market and the rise in terror incidents in the country for the rise in dollar value against the rupee.

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