Pakistan rupee up 26 paisa against US dollar in interbank trading

Despite the tall claims made by Finance Minister Ishaq Dar, Pakistan’s rupee continued to sustain losses against the US dollar on Monday, closing at Rs223.66 in interbank trading.

The latest loss of 0.22 percent (Rs0.49) means that the local currency has depreciated for the seventh consecutive session against the Friday’s value of Rs223.17.

Meanwhile, the State Bank data shows that the rupee has cumulatively decreased by 1.01 percent (or Rs2.24) in the past seven working days, compared to the November 10 close at Rs221.42.

In open market, the rupee settled at Rs231 losing Rs1.5 against the greenback compared to Friday’s rate of Rs229.5, which represents a huge difference between the interbank and open market rates.

According to experts, uncertainty over the ninth review by IMF, growing risk of defaulting on its obligations to repay foreign debt despite Finance Minister Ishaq Dar’s reassurance, and absence of a timeframe regarding incoming financing from Saudi Arabia and China are the factors contributing to this trend.

Globally, the US dollar was firmly higher against major currencies on Monday, as rising Covid-19 cases in China led to new restrictions and weighed on global investor sentiment.

The dollar was up 0.5 percent against Japan’s yen at 141.07, its highest since November 11. Meanwhile, the euro was 0.62 percent lower against the greenback at $1.026.

On the other hand, the dollar index, which tracks the currency against major peers, has slid more than 6 percent from a 20-year high in October. Last month, a fall in the US inflation rate has driven bets that the US Federal Reserve will slow down its interest rate hikes.

It may be recalled that Dar had promised repeatedly that the dollar would soon be available at Rs200 as the actual value was much lower than that. But after some positive signs, the dollar again started gaining value against the local currency.  

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