There was a loss of around Rs2.38 in the local currency on Tuesday as an outcome of more ambiguities revolving around the renewal of the International Monetary Fund (IMF) programme, reversing an upward trend for the State Bank of Pakistan (SBP).
As per the report of the State Bank of Pakistan (SBP), after the current declination of Rs2.38, or 1.15 percent, the local currency has concluded at Rs206.94 in opposition to the US dollar in the interbank market. Â
However, investors were quite concerned about the tardiness of the revival, despite the guarantees by Finance Minister Miftah Ismail that the IMF programme was on track.
The local currency was predicted to become stronger today, contrary to traders’ expectations, as market participants were also expecting a rise in remittance inflows before the festival of Eid ul Adha.
A commercial bank trader said, “We anticipate the rupee to become strong modestly in opposition to the dollar next week with better confidence as clarity is arriving on the IMF programme.”
The local currency might be very useful in the coming days from an expected increase in dollar inflows in the guise of worker remittances.
The rupee has dropped dramatically, by 31.35 percent (or Rs49.4) since the beginning of the previous financial year (July 1, 2021) in comparison to the end of the last fiscal year (Rs157.54). Â
