Rupee swings down with 0.17% loss

It comes after IMF put average currency value at Rs226 for FY23

KARACHI:

The consolidating Pakistani currency lost 0.17% of value (or Rs0.38) and closed at Rs218.98 against the US dollar in inter-bank market on Friday, ending its appreciation streak of the past three days.

“The downtrend came following International Monetary Fund (IMF) projected average value of the rupee at Rs226 (against the US dollar) in current fiscal year 2023,” said Ismail Iqbal Securities Head of Research Fahad Rauf while talking to The Express Tribune.

The IMF made the projection in the seventh and eighth review of its loan programme, which was made public on Friday.

The IMF’s projection and improvement in relevant economic indicators suggest the currency will stabilise in the range of Rs220-225. “The rupee might see depreciation if the US dollar strengthens further against global currencies.”

Earlier during the day, the local currency hit an intra-day low of Rs219.79 against the greenback, a currency dealer said. It had closed at Rs218.60 on Thursday, according to the central bank.

“The minor fluctuation (of 0.17%) should not be called depreciation. Currency fluctuates when it is consolidating,” he said.

The IMF’s projection indicates that the global creditor does not see any major movement in the currency during current fiscal year 2022-23.

The currency hit a one-month high at Rs213-214 in August. Prior to that, it tumbled to an all-time low at Rs239.94 on July 28, 2022.

Depletion of the central bank’s foreign exchange reserves has slowed down over the past couple of weeks, compared to the fast pace observed in prior months. “This means inflows have started improving and outflows are decreasing,” he noted.

Published in The Express Tribune, September 3^rd, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.