KARACHI: The Pakistani rupee continued to depreciate against the US dollar in early morning trading on Wednesday, losing over Re1 in the interbank market.
The local currency was trading at Rs206.25 against the US dollar, down Rs1.9.
The currency closed at Rs205.16 on Tuesday, according to the State Bank of Pakistan (SBP).
Meanwhile, the Pakistan Stock Exchange (PSX) got off to a good start, with the benchmark KSE-100 index rising 439.39 points, or 1.07 percent, to 41,494.07 points at 11 a.m. This could be due to investors regaining faith in Pakistan’s chances of being removed from the Financial Action Task Force’s (FATF) grey list.
The rupee hit a new low on Tuesday as fears grew that the IMF’s much-needed $6 billion bailout package would be resurrected after the country’s recently unveiled budget failed to satisfy the lender.
The rupee has been losing ground, according to traders, as a result of the balance of payment crisis and falling foreign exchange reserves. However, the IMF’s comments on the budget’s measures put new pressure on the domestic currency.
Pakistan has been asked by the IMF to take “additional measures” to strengthen the budget and bring it in line with the fund’s key objectives.
