Pakistani rupee knocks out US dollar once again
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The Pakistani rupee was back in top gear against the US dollar as the local currency listed a solid performance in the interbank market on Wednesday, reported 24NewsHD TV channel.
The rupee, which also traded in positive territory against the greenback all day long on Tuesday but faltered towards the end of trade, again flexed its muscles in Wednesday and went up by a healthy margin of Rs2.95 and ended the day at Rs273.33.
Interbank closing #ExchangeRate for todayhttps://t.co/jSoTpRmoBh pic.twitter.com/p6j6ojPs9Z
— SBP (@StateBank_Pak) February 8, 2023
On Tuesday, the local currency depreciated by 0.35% in the inter-bank market. As per the State Bank of Pakistan (SBP), the Pakistani currency closed at 276.28 against the US dollar, a decline of 98 paisas.
Interbank closing #ExchangeRate for todayhttps://t.co/zwZDVpzIKC pic.twitter.com/c4WeQHFGQB
— SBP (@StateBank_Pak) February 7, 2023
The currency has depreciated by 25.82% during the ongoing fiscal year against the greenback.
Experts believed that the rupee stumbled on Tuesday because of the return of the pressure regarding conclusion of the technical-level talks between Pakistan and the International Monetary Fund (IMF) team. The policy-level discussions were expected to start soon.
Reports suggest that the power sector’s untargeted subsidies were a major concern for the IMF as it wants to make them targeted. Another concern was that the primary deficit was considerably higher compared to the government estimates.
Some market pundits were of the view that given the ongoing talks with the Fund and negotiations on major fiscal reforms, there are indications that the rupee will continue to remain volatile in the short term as IMF review concludes and other bilateral and multilateral flows start pouring in.
Reporter Ashraf Khan