Pakistani rupee loses winning streak against US dollar amid speculations

By: News Desk
Published: 11:24 AM, 5 Jul, 2022
Pakistani rupee loses winning streak against US dollar amid speculations
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The Pakistani rupee which was constantly gaining some ground against the US dollar for almost a week, has lost its steam today (Tuesday) as its value has been depreciated by massive 2.38 in the interbank trading, reported 24NewsHD TV channel.

According to forex dealers, during the morning trading session, the Pakistani rupee depreciated by 44 paisas and the exchange rate of US dollar soared to Rs205 in early hours.

Later, the greenback took its lead to Rs2.38 and ended the day at Rs206.94, the forex dealers said.

In the open market, the US dollar soared by Rs2 and settled the day for Rs207.

Yesterday, the American currency lost 39 paisa against Pakistani rupee and closed at Rs204.56. 

According to economic experts, the market sentiments regarding Pakistani currency changed after some news reports doing rounds on social media that the IMF programme being postponed or delayed due to some anti-corruption laws. 

Though Finance Minister Miftah Ismail denied the news in his tweet which he posted on Monday but still the market remained jittery. 

It was observed that after the announcement of the Memorandum of Economic and Financial Policies (MEFP) received from IMF for the combined 7th and 8th reviews on June 28, the rupee started its upward trajectory against the greenback in the interbank market.

Now, experts said the fresh decline in rupee's value was due to repayments pressure and increase in dollar demand.

SBP lends Rs1,186bn to commercial banks 

Meanwhile, the State Bank of Pakistan on Tuesday provided Rs1186.40 billion to commercial banks which are facing a dearth of cash for 73 days under the open market operation. 

The SBP has lent the money to the commercial banks on 13.97% markup rate. 

Reporter Ashraf Khan