Pakistani rupee continues to lose value against US dollar

Pakistani rupee Wednesday continued to retreat against the US dollar in the interbank market as thinning foreign exchange reserves and a delay in the funding from the International Monetary Fund (IMF) contributed to the factor.

Pakistan Rupee loses another five paisas against the US dollar at the close of the interbank trading as it closed at Rs224.16 registering a decline of 0.02% compared to Tuesday’s close of 224.11, the State Bank of Pakistan's (SBP) data showed.

Interbank closing #ExchangeRate for todayhttps://t.co/O4MPZjc7Lj pic.twitter.com/vujTeL5t4g

— SBP (@StateBank_Pak) December 7, 2022

Sentiments in the currency market remained negative due to depleting foreign exchange reserves and a growing external funding gap. The largest concern is the repayment of external debt, even though the current account deficit is decreasing as a result of currency depreciation and other tightening measures.

Moreover, investors are keeping a close watch on the developments from the International Monetary Fund (IMF). The next $1 billion tranche has been delayed as the government hasn't met the benchmarks necessary to finish the ninth review of the bailout package.