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Dollar value dips, interbank rate drops to Rs158.93

Dollar value dips, interbank rate drops to Rs158.93

KARACHI: Pakistani rupee on Monday further recovered its value against the US dollar by 18 paisa in the interbank market, and was traded at Rs158.93. In the open market, the local currency appreciated by 50 paisas and the dollar was traded at Rs159.

In the previous week, the Pakistani rupee has depreciated by 39 paisa against the US dollar in the outgoing week and closed at Rs160.58 on July 26.

In the earlier weeks, the rupee was observed to cumulatively depreciate against the greenback, which in turn had resulted in increased prices of goods and hardships for the general public.

The SBP has let the rupee depreciate significantly in the inter-bank market after finalising an agreement with the International Monetary Fund (IMF) for a loan programme on May 12.

The IMF has asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar.

On the other hand, the World Bank Group has also supported the idea of leaving the rupee free from state control in an attempt to give much-needed boost to exports and fix a faltering economy.

In the previous weeks, the local currency has depreciated massively despite receiving the first tranche of $991.4 million from the International Monetary Fund (IMF).

The stringent conditions – on which the global moneylender has formally approved the bailout package of $6 billion for Pakistan – seem to have exerted more pressure on the local currency.

The gradual drop in the rupee had come due to high demand for the dollar against thin supply as the country continued to make aggressive international payments to partially pay off huge foreign debt and for imports.