The dollar’s interbank rate jumped to a 16-week high to Rs157.55. The last time dollar traded above this level was on March 2.
According to experts, the main reason for the weakening rupee or dollar rate increase is the June effect. June is the last month of the fiscal year and businesspersons and importers have to fulfill their commitments before the end of the fiscal year.
“It’s mainly due to the month of June,” said Malik Bostan, the chairperson of the Forex Association of Pakistan. “Since the year is about to close, people have to fulfill their commitment of payments. For that, they need to buy dollars.”
He added that people expect taxes and duties might
increase in the budget, importers start importing before the new taxes and
duties become applicable with the start of the new fiscal year in July.
Bostan said that exporters also delay receiving payment receipts with expectations that the dollar rate would go up and then…