Pakistani currency maintained its downward streak on Wednesday, but the drop was lower than the ones recorded for most of the days in the past three months. The rupee trimmed 0.21% (or Rs0.45) of its value to a new all-time low at Rs211.93 against the US dollar in the inter-bank market compared to Tuesday’s close at Rs211.48, according to the central bank.
The local currency traded in a narrow band of Rs211-212 in the spot (ready) market throughout the day. Reports suggested that it traded in a range of Rs208-209 on the futures counter. The rupee showed some signs of resistance against the greenback after Pakistan won IMF’s approval for the amended FY23 budget and hoped to reach a staff-level agreement to revive the $6 billion loan programme in a few days.
Besides, the rupee managed to gain some support from the central bank measures to increase dollar supply and reduce import demand. The rupee also got support after the central bank clarified that there was no shortage of US dollar with the State Bank and commercial banks to pay for imports. It said foreign exchange reserves at around $9 billion were “all usable for all purposes”. Earlier, the rupee became the worst-performing currency in Asia in 2022.
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