Rupee Continues to Lose Ground Against US Dollar 24th Day in a Row

The Pakistani Rupee (PKR) continued its unprecedented fall against the US Dollar (USD) on Monday for the 24th straight session and reported losses in the interbank market. The local currency lost Rs. 0.48 against the greenback at the close of today’s session.

The PKR depreciated by 0.21 percent against the USD and closed at Rs. 230.15 today. The PKR had lost Rs. 0.52 against the greenback at the close of the previous session.

After a decline of $3.6 billion during the last eight weeks, the foreign exchange reserves held by the central bank increased by $258 million on a weekly basis last week.

However, the respite is expected to be short-lived as discussions with the International Monetary Fund (IMF) on the 9th review of the $7 billion Extended Fund Facility remain suspended. Earlier in the month, Finance Minister Ishaq Dar met an IMF delegation on the sidelines of the Geneva conference but there has been little progress since. The finance minister is currently in Qatar for discussions on the possibility of the sale of two power plants.

Last week, State Bank of Pakistan (SBP) Governor Jameel Ahmad said that the country’s foreign exchange reserves would start to improve as dollar inflows are expected from next week.

The PKR also reported losses against most of the other major currencies in the interbank market today. It lost Rs. 2.32 against the Euro (EUR), and Rs. 1.76 against the Pound Sterling (GBP).

The rupee also lost against the Australia Dollar (AUD) and the Canadian Dollar (CAD), posting losses of Rs. 1.40.