ISLAMABAD: The US dollar again increased close to 200 rupees mark in the interbank market amid concerns about the upcoming budget 2022-23 and revival of the International Monetary Fund (IMF) programme.
Today’s downtrend when the currency market opened was followed by a reversal on Friday in the rupee’s momentum as it shed 0.17% to close at Rs197.92 against the US dollar in the interbank market.
Since the start of this fiscal year on July 1, 2021, the rupee has collectively dropped by over 25%, or Rs40, compared to the previous fiscal year’s close at Rs157.54.
Renewed pressure on the rupee on an increase in fiscal-year-end dollar demand from importers and the corporate sector will keep the local currency under pressure.
The report about China’s $2.6 billion deposit placement has failed to entice traders as they don’t see it as useful for fiscal or external support.
Pakistan’s foreign exchange reserves decreased by $378 million to $15.771 billion in the week ended May 27. The State Bank of Pakistan’s reserves have dropped to $9.72 billion from $10.088 billion, creating panic in the inter-bank and open market.
