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Pakistani rupee fell Against the US dollar for the 19th Consecutive Session

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1 year ago

January 17, 2023

Pakistani rupee fell Against the US dollar for the 19th Consecutive Session

(CTN News) – The Pakistani rupee lost value versus the US dollar for the 19th session on Monday, falling 0.08% in the inter-bank market.

The rupee dropped by Re0.19 to end the day at 228.34, according to the State Bank of Pakistan (SBP). The current fiscal year has seen a 10.33% rupee depreciation compared to the dollar.

The rupee lost value versus the US dollar in all five of the previous week’s trading sessions, dropping 0.44% to end the week at 228.15 in the interbank market.

A sharp decline in foreign exchange was also noted on Thursday, with State Bank of Pakistan (SBP) reserves reaching $4.3 billion following more than $1.2 billion in debt payments.

Even though Pakistan was able to get a rollover of $2 billion and the UAE also made an additional loan announcement of $1 billion, inflows have not yet occurred, highlighting the need to restart the dormant International Monetary Fund (IMF) program.

Jameel Ahmad, the governor of SBP, assured the business community that the problem of dollar limitations would be resolved shortly after manufacturers predicted bleak prospects for industrial output if raw material imports were to continue to be restricted.

By changing the petroleum levy (PL) rates on Sunday, the federal government maintained the same pricing for all petroleum products as of January 16.

Compared to key peers globally, the dollar dropped to a seven-month low on Monday, while the yen surged to a more than seven-month high as traders increased their wagers that the Bank of Japan could adjust its yield control policy more at its meeting this week.

The US dollar index sank 0.46% to a seven-month low against a basket of currencies as the dollar continued to decline after data revealed that US consumer prices fell in December for the first time in more than 2-1/2 years.

Investors are now wagering that the Fed may be reaching the end of its rate-hike cycle and that rates would not go as high as previously anticipated since the world’s biggest economy’s decades-high inflation is beginning to moderate.

While still close to 2023 highs, oil prices, a crucial measure of currency parity, declined on Monday as mounting COVID-19 cases in China cast doubt on the chances for stronger demand in the world’s largest crude importer as it reopens after lifting tough anti-virus controls.