ISLAMABAD: the Pakistani rupee experienced a slight decline, depreciating by 0.06% against the US dollar in the interbank market on Monday, as reported by the State Bank of Pakistan (SBP). The local currency settled at Rs 278.12, marking a marginal loss of Rs 0.18.
Prior to Eid, the rupee had seen a consistent appreciation, gaining over Rs 6 against the dollar in the last two to three weeks.
Meanwhile, Pakistan’s economic team, led by Finance Minister Muhammad Aurangzeb, departed for the US to engage in talks with the International Monetary Fund (IMF) for a new bailout program. Success in these discussions could potentially strengthen the local currency. Talks with the IMF are scheduled for the current week, beginning April 17th.
Pak Rupee Against US Dollar
The Pakistani rupee’s performance against the dollar has been volatile in recent months, with a notable bull run followed by fluctuations. Notably, in December 2023 and January 2024, the rupee appreciated against the dollar due to financial inflows, including funds from the IMF and roll-overs from the UAE and China. This led to an appreciation of over Rs 7 in the interbank market over the past five to six weeks.
In a significant development on March 20th, Pakistan and the IMF reached a staff-level agreement on the final review of the $3 billion Standby Arrangement, providing some relief for the local currency and the country’s economy. However, it is anticipated that the new IMF agreement may be conditioned with further taxation, potentially leading to increased prices and inflation in the country.
