The Pakistani rupee fell for a third straight session on Tuesday after the central bank withdrew its support on Friday, effectively devaluing the local currency.
It was at 110.25 per dollar at 11am after opening at 108.41, traders said. It had opened at 105.55 per dollar on Friday.
The rupee, which has mostly traded in a tight range of 104-105 per dollar since December 2015, has shed over 5 percent in the past three sessions.
The State Bank of Pakistan's (SBP) withdrawal of support for the rupee was widely seen as a devaluation measure since the central bank is the most influential player in the thinly traded local foreign exchange market and controls what is widely considered a managed float system.-Reuters
BR Research adds: The rupee, however, was trading versus the euro for buying and selling at Rs 127.50 and Rs 129.50, they said.
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Open Bid Rs.110.80
Open Offer Rs.112.00
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Bid Rate Rs.110.25
Offer Rate Rs.110.50
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The short supply phenomenon of the greenback further helped its appreciation at Rs 109.65 and Rs 111.00 for buying and selling, respectively, as compared to the overnight closing rates of Rs 108.50 and Rs 109.00 respectively, local currency dealers said.
Versus the pound sterling, the local currency also followed the same suit for another day. Resultantly, the pound's buying and selling rates further climbed from Monday's closing of Rs 143.10 and Rs 144.40 to Rs 143.80 and Rs 144.80 respectively, they added.
The dollar opened at Rs 109 (buying) and Rs 109.10 (selling) against last rate of Rs 108.40 (buying) and Rs 108.50 (selling). It closed at Rs 109 (buying) and Rs 109.10 (selling).