US dollar hammers Pakistani rupee in interbank trading

Due to absence of some positive news on IMF loan deal, the US dollar on Monday hammered the Pakistani rupee in the interbank market by scoring a gain of over a rupee, reported 24NewsHD TV channel.

The trading was subdued at the start of business but the greenback hit back powerfully. According to the State Bank of Pakistan, the US dollar gained Rs1.25 in value against the local currency and ended the day at Rs285.04.

Interbank closing #ExchangeRate for todayhttps://t.co/HutXa04vhe pic.twitter.com/5Ksvo7i8AH

— SBP (@StateBank_Pak) April 3, 2023

On the last trading day on Friday, the Pakistani rupee had registered a marginal drop against the US dollar, depreciating by 0.05% in the interbank market. The rupee had settled at Rs283.79, a loss of 13 paisas.

Interbank closing #ExchangeRate for todayhttps://t.co/ddrtZIr3FF pic.twitter.com/mAzkm3IWYb

— SBP (@StateBank_Pak) March 31, 2023

In a key development, Federal Minister for Finance and Revenue Ishaq Dar had said “All technical-level discussions with the International Monetary Fund (IMF)” are over. “The IMF is demanding what was committed during the fifth and sixth review of the bailout,” Dar said. “The lender wants guarantees of three billion dollars from the UAE and Saudi Arabia,” the minister told the Senate.

Moreover, foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $354 million, clocking in at $4.2 billion as of March 24.

Total liquid foreign #reserves held by the country stood at US$ 9.82 billion as of March 24, 2023.
For details https://t.co/WpSgomnKT3 pic.twitter.com/fDqyyEexxk

— SBP (@StateBank_Pak) March 30, 2023

This was the first decline in central bank-held reserves on a weekly basis after six successive increases. The overall number stands at a critical level of around a month of import cover.
Reporter Ashraf Khan