Pakistani rupee soft again as US dollar surges in interbank market
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Pakistani rupee has turned into soft currency against the powerful US dollar as it again came under pressure in interbank trading on Thursday, reported 24NewsHD TV channel.
According to the information provided by the forex dealers, the local currency slumped by another Rs2.53 against the greenback in the interbank trading and ended the day at record low of Rs271.36.
Interbank closing #ExchangeRate for todayhttps://t.co/lIkhkkLfCi pic.twitter.com/waVjyFSTUI
— SBP (@StateBank_Pak) February 2, 2023
On Wednesday, the Pakistani rupee lost its value by 0.35% against the US dollar and ended the day at Rs268.83 down by 94 paisas.
Interbank closing #ExchangeRate for todayhttps://t.co/dXkGah78kO pic.twitter.com/TFFEDfIqvS
— SBP (@StateBank_Pak) February 1, 2023
Ratings agency Fitch Solutions has maintained that Pakistani rupee is expected to weaken further, particularly with the country’s balance of payments position that is likely to remain weak for several more months.
The ratings agency noted that a continued weakening in the rupee will have broader economic implications. In the near term, it could exacerbate imported inflationary pressure and may eventually result in steeper policy rate hikes from the State Bank of Pakistan.
Meanwhile, in a key development, the International Monetary Fund (IMF) has asked Pakistan to withdraw untargeted subsidies and reduce circular debt, as well as meet petroleum levy and Federal Board of Revenue (FBR) tax collection targets.
The Fund’s mission is currently in Pakistan for technical and policy-level discussions to revive the $7 billion Extended Fund Facility (EFF).
Reporter Ashraf Khan