Pakistani rupee Wednesday continued to retreat against the US dollar in theinterbank market as thinning foreign exchange reserves and a delay in thefunding from the International Monetary Fund (IMF) contributed to thefactor.
Pakistan Rupee loses another five paisas against the US dollar at the closeof the interbank trading as it closed at Rs224.16 registering a decline of0.02% compared to Tuesday’s close of 224.11, the State Bank of Pakistan’s(SBP) data showed.
Sentiments in the currency market remained negative due to depletingforeign exchange reserves and a growing external funding gap. The largestconcern is the repayment of external debt, even though the current accountdeficit is decreasing as a result of currency depreciation and othertightening measures.
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Moreover, investors are keeping a close watch on the developments from theInternational Monetary Fund (IMF). The next $1 billion tranche has beendelayed as the government hasn’t met the benchmarks necessary to finish theninth review of the bailout package.
