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KARACHI: The Pakistan rupee on Monday lost more ground against the US dollar, depreciating 0.45% in the interbank market.
At close, the rupee settled at 297.13, a decrease of Rs1.35, as per the State Bank of Pakistan (SBP).
Interbank closing #ExchangeRate for today https://t.co/06ebUn3yum#SBPExchangeRate pic.twitter.com/A8hyc0EJDw
— SBP (@StateBank_Pak) August 21, 2023
This is its weakest closing level since May 11, and also precariously near the all-time historic low against the US dollar in the inter-bank market.
The rupee significantly declined by 2.5% over the previous week, closing at 295.78 against the US dollar.
However, as a result of its decline, the distance between it and open-market rates shrank. This was significant because the International Monetary Fund (IMF) had previously recommended a 1.25% differential in its country report following the Stand-By Arrangement.
The rupee is anticipated to continue under pressure in the coming days as foreign exchange inflows appeared to have stopped.
Experts cited the rupee decline to an increase in import payments, amid SBP’s decision to lift curbs on imports.
