Pakistani rupee eases further against US dollar in interbank

The bleak economic macros coupled with political instability and stalled IMF deal are weighing down hard on Pakistani currency's value as the local unit lost 37 paisas against the US dollar in the interbank trade on Tuesday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the greenback kept up its upward trajectory by gaining 37 paisas in its value and ended the day at Rs286.56.

Interbank closing #ExchangeRate for todayhttps://t.co/AQSIQoQx99#SBPExchangeRate pic.twitter.com/enDfxpQlXB

— SBP (@StateBank_Pak) June 6, 2023

Yesterday, the Pakistani rupee eased to Rs286.19 after registering a decline of 51 paisas in its value.

https://twitter.com/StateBank_Pak/status/1665682776262336514

Over the past few weeks, the local unit has been facing a considerable pressure due to limited dollar supply and a tough political environment. On May 11, 2023, the rupee hit a record low of Rs298.93 per US dollar, raising concerns among investors and undermining confidence in the local currency.

Yesterday, the Pakistani rupee depreciated by 2.6% against the US dollar in the open market as the market remained dry, allowing the greenback to swirl up by Rs8 and reaching Rs308.

Last week, the central bank allowed the commercial banks to buy dollars from open market for international credit card payments. The decision quickly brought down dollar’s value in the open market. However, a perception prevailed in the market on Monday that the government wanted to bring down dollar’s rate artificially in the open market. Hence, this perception discouraged people from selling their foreign currencies and led them to wait for further changes.

However, in another development which might have a positive effect on the value of local currency, Prime Minister Shehbaz Sharif has said Pakistan is “very hopeful” of finalising a deal with the International Monetary Fund (IMF) this month.

During an exclusive interview with Turkish news agency Anadolu on Monday, the prime minister said the ninth review by the IMF would match all terms and conditions, adding that “Hopefully, we’ll have some good news this month”.

He said that Pakistan has met each and every requirement of the IMF as prior actions.

Reporter Ashraf Khan