The downtrend in the rupee continued on Wednesday as well as the currency fell by Rs1.48 against the US dollar to close at Rs185.92 on the back of uncertainty about the resumption of International Monetary Fund (IMF) loan programme and speculation in the market.
According to the State Bank of Pakistan, the rupee closed at Rs184.44 on Tuesday. The currency has dropped Rs4.37 in the last three sessions since Monday. Arif Habib Limited, in a report, cited that the rupee had lost 2.37% in the last three trading sessions. The currency was down 0.8% day-on-day on Wednesday while it had lost 15.26% since the start of ongoing fiscal year on July 1, 2021.
Arif Habib Commodities CEO and Managing Director Ahsan Mehanti told The Express Tribune that the decline in the rupee came on the back of uncertainty regarding talks between the IMF and Pakistan government. “Lack of clarity is taking a toll on the local currency,” he said and flagged soaring import bill as a threat to the rupee, which was mounting pressure on the currency.
Lakson Investments Chief Investment Officer Mustafa O Pasha said that the rupee was losing steam. “The recent rally that was sparked by political developments seems to be petering out as the reality of economic conditions starts to set in again,” he added.
Published in The Express Tribune, April 21st, 2022.
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