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The Pakistani rupee turned soft against the stronger US dollar as it came under pressure again in interbank trading on Thursday, TV channel 24NewsHD reported.
According to foreign exchange dealers, the local currency fell by another Rs 2.53 against the US dollar in interbank transactions to end the day at a record high of Rs 271.36.
Interbank closing #Exchange rate for todayhttps://t.co/lIkhkkLfCi pic.twitter.com/waVjyFSTUI
— SBP (@StateBank_Pak) February 2, 2023
The Pakistani rupee lost 0.35% against the US dollar on Wednesday and ended the day at 268.83, down 94 paise.
Interbank closing #Exchange rate for todayhttps://t.co/dXkGah78kO pic.twitter.com/TFFEDfIqvS
— SBP (@StateBank_Pak) February 1, 2023
Rating agency Fitch Solutions has highlighted that the Pakistani rupee is expected to weaken further, especially the country’s balance of payments position, which is likely to remain weak for several more months.
The rating agency noted that the continued weakening of the rupee would have wider economic implications. In the near term, it may exacerbate inflationary pressures from imports and may ultimately lead to a sharp hike in the State Bank of Pakistan’s policy rate.
Meanwhile, in a key development, the International Monetary Fund (IMF) has asked Pakistan to scrap untargeted subsidies and reduce revolving debt, as well as meet oil duty and Federal Board of Revenue (FBR) tax collection targets.
Fund is currently on a mission to Pakistan for technical and policy discussions on revitalizing the $7 billion Expanded Fund (EFF).
Reporter Ashraf Khan
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