KARACHI: The Pakistani rupee on Tuesday hit a new all-time low of 288.43 against the US dollar in the inter-bank market, declining by Rs1.34 or 0.46%, according to the State Bank of Pakistan (SBP). The lack of progress in resuming the International Monetary Fund (IMF) programme is believed to be the main reason for the depreciation of the rupee, according to Fahad Rauf, Head of Research at Ismail Iqbal Securities.
Tahir Abbas, Head of Research at Arif Habib Limited, noted that a few letters of credit were opened, leading to pressure on the rupee. This comes after the rupee experienced a significant drop against the US dollar, settling at 287.09 in the inter-bank market after a loss of Rs2.44 or 0.85%.
The US dollar paused after its recent rally against major peers due to a resilient US labour market boosting the case for a Federal Reserve rate hike next month. The oil prices also raised today, with investors awaiting a slate of reports on inflation, oil demand, and supply due this week that could provide the direction of the market.
Addressing the joint session of the parliament, Federal Minister for Finance and Revenue Ishaq Dar said that a staff-level agreement with the International Monetary Fund (IMF) will be inked at the earliest. He maintained that federal government has took hard steps to get the remaining IMF loan programme.
