Rupee snaps winning streak

The local currency came under renewed pressure, as it ended its five-day long appreciation streak and dropped 0.24%, or Rs0.63, to Rs262.51 against the US dollar in the interbank market on Tuesday.

For financial experts, the latest depreciation in the domestic currency is no surprise considering it had cumulatively regained 5.6%, or Rs14.7, in the past three weeks to reach Rs261.88/$ on Monday, compared to an all-time low hit at Rs276.58/$ on February 3, 2023.

Earlier, they had anticipated the rupee-dollar exchange rate stabilising somewhere in the range of Rs265-275/$.

The apparent surge in the demand for US dollars also mounted a little pressure on the domestic currency, they added.

To recall, the currency had quickly devalued by 16.5%, or Rs45.69, in 10 days (January 25 to February 3) to record a low at Rs276.58/$ after the government ended its control over the rupee-dollar exchange rate.

An international media outlet reported on Tuesday that Pakistan is expected to win staff-level agreement with the IMF within three days of the parliament approving the mini-budget – tax measures – worth Rs170 billion.

Published in The Express Tribune, February 22^nd, 2023.

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