(CTN News) – The dollar continued to rise in the interbank market to trade at Rs208.50 to a dollar amid increasing uncertainty over the IMF’s loan program, which had been stalled for policy breaches by the previous government.
Friday, Geo News reported that the local unit lost 0.83 during the intraday trade.
Fears that Pakistan’s declining reserves will make it difficult for the country to pay its imports or repay its external debt have dragged on the rupee, which hit a fourth consecutive record low against the dollar on Thursday.
The State Bank of Pakistan’s foreign exchange reserves decreased by $241 million or 2.6% to $9.0 billion as of June 10, their lowest level since November 2019.
After aggressive monetary tightening by the Fed Reserves in an attempt to tame high inflation, the dollar strengthened against major world currencies.
“Falling FX reserves are putting pressure on PKR,” Mohammed Sohail, CEO of Topline Securities, said on Thursday after the rupee closed at an all-time low of 207.67 to the dollar.
The staff-level agreement with the IMF may provide some support to local currencies, Sohail had said.
Pakistan’s currency depreciated by 14.57% against the dollar this year, according to data compiled by Ismail Iqbal Securities.
Other currencies are underperforming their regional peers and global peers as well, not just the rupee. To date, the Pakistan rupee and the Japanese yen have fallen almost equally against the dollar. Yen fell 13.34%.
Pakistan is one of 15 currencies to have lost ground.
In terms of currency performance, the Sri Lankan rupee plunged 43.9%, followed by the Laotian Kip, with a drop of 24%, the Turkish Lira, with a drop of 23.18 %, and the Ghana Cedi down 22.33%, respectively.