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KARACHI: The Pakistani rupee on Tuesday registered the biggest loss against the US dollar since May 11, depreciating Rs2.78 or 1.03% in the interbank market.
At close, the rupee settled at 291.5, as per the State Bank of Pakistan (SBP). This is its weakest closing since May 11 this year, when the rupee settled near the 299 level.
In order to manage the affairs of the economy, which is now enrolled in a program with the International Monetary Fund (IMF), a caretaker setup was put in place on Tuesday, replacing the coalition government.
The rupee lost 0.52% of its value over the previous week and finished at 288.49 against the US dollar.
As the IMF program’s effects came to an official end and economic realities took their place, the currency declined in four of the five sessions.
Additionally, inflows seemed to have dried up with foreign exchange reserves held by SBP falling $110 million on a weekly basis to stand at $8.04 billion as of August 4, data released in the previous week showed.
In a key development, SBP Governor Jameel Ahmad said that global economic conditions have largely contributed to higher inflation in Pakistan.
“World economy remained under pressure in near past that also resulted in an increase in inflation in Pakistan and these conditions were further aggravated due to floods and delay in IMF program review,” he said.