The value of the Pakistani rupee fell against the US dollar, reaching a high of Rs208. At 12:25 p.m. on Thursday, the rupee has been trading at Rs208.25 versus the US dollar.
At 12:25 p.m. local time, the rupee depreciated against the greenback by Rs1.79.
Wednesday’s closing rate for rupees was Rs206.46, according to data from the central bank.
After the Federal Reserve System Bank (Fed) lifted its main interest rate by a 28-high of 75 basis points, the current depreciation has been observed. Fed action is projected to boost the dollar’s value in relation to other international currencies, such as the Pakistani rupee.
Another factor that might impede the flow of money is the rumour that local exporters have had orders cancelled.
Reviving Pakistan’s IMF loan programme continues to put pressure on Pakistan’s currency. According to Arif Habib Limited’s Head of Reserves, the balance of payments issue necessitates the resumption of the IMF programme.
At $9.2 billion as of last Thursday, Pakistan’s foreign currency reserves have fallen below a crucial six-week import cover level. It is possible that the reserves will continue to fall when the central bank releases its weekly report on reserves tonight.
In the inter-bank market, the Pakistani rupee fell below Rs205 versus the US dollar for the first time on Tuesday, as traders’ thoughts were occupied with contradictory rumours regarding a possible restart of the IMF loan programme.
A 0.63 percent (or Rs1.30) decline in the rupee’s value versus the dollar was reported by the State Bank of Pakistan (SBP), putting it at Rs205.16 as of midday Tuesday.
The rupee had previously fallen to a new intra-day low of Rs205.77, before regaining some of its losses before the end of the trading day.
Works at The Truth International Magazine. My area of interest includes international relations, peace & conflict studies, qualitative & quantitative research in social sciences, and world politics. Reach@ [email protected]
