KARACHI, July 5(ABC): The State Bank of Pakistan (SBP) Tuesday reversed its uptrend as the local currency lost Rs2.38 due to renewed uncertainty regarding the revival of the International Monetary Fund (IMF) programme.
According to the State Bank of Pakistan (SBP), the local currency closed at Rs206.94 against the US dollar in the interbank market, after a fresh decline of Rs2.38, or 1.15%.
Despite clarity from Finance Minister Miftah Ismail regarding the IMF programme being on track, investors remained concerned about the delay in the revival.
Today’s decline was contrary to traders’ expectations regarding the appreciation of the local currency as market players are eyeing an increase in inflows from remittances ahead of the Eid ul Adha festival.
“We expect the rupee to gain slightly against the dollar next week amid improved sentiment as clarity is coming on the IMF programme,” a commercial bank trader had said.
In the upcoming days, an expected increase in dollar inflows in the shape of workers’ remittances may also support the domestic currency.
Since the beginning of the last fiscal year (July 1, 2021), the rupee has dropped by a massive 31.35% (or Rs49.4) compared to the previous fiscal year’s close at Rs157.54.