Rupee’s downward slide continues as SBP keeps policy rate unchanged

A dealer can be seen holding Pakistani currency. — Reuters/File
A dealer can be seen holding Pakistani currency. — Reuters/File
  • Rupee settles at Rs176.72 against the greenback.
  • Decline comes on back of constant supply-side pressure.
  • Local currency has depreciated by 12.17% since July 1, 2021.

KARACHI: Pakistani rupee continued to slide against the US dollar on Tuesday with a fresh decline of 0.13% owing to the constant supply-side pressure.

The local currency closed at Rs176.72 against the greenback in the interbank market surpassing Monday’s close of Rs176.49 due to increased demand from the importers and a lack of sufficient supplies.

With a fresh decline of 0.13%, the rupee has depreciated by 12.17% (or Rs19.18) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

The rupee has maintained the downtrend for the past eight months. It has lost 16.05% (or Rs24.45) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

Currency dealers believe that the rupee will gain ground against the greenback this week aided by inflows from exporters and hopes of an approval of the International Monetary Fund (IMF) loan programme.

A currency dealer said: “Despite today’s weakness in the rupee, we expect it to trade on a stable note in coming days due to the absence of positive triggers in the market.”

It is pertinent to mention here that the State Bank of Pakistan’s monetary policy committee on Monday left the benchmark interest rate unchanged at 9.75% for the next one-and-a-half months.

Meanwhile, the government has also started to market a seven-year dollar Sukuk to global investors. Initial news suggests that initial profit thoughts (IPT) of Pakistan Sukuk start from 8.25-8.37% level.

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