The Pakistani rupee began trading at 284 in the interbank market today, posting slight losses against the US dollar.
It was mostly stable against the US dollar during intraday trade at 11:30 PM.
Before anchoring trends for the rest of the day, the interbank rate stayed at the same level.
Rupee Lost Its 9-Day Winning Streak Against U$D
Today’s open market rates ranged from 283 to 285, depending on the currency counter.
The PKR lost three paisas versus the dollar today, and at close, it had depreciated by 0.01 percent to close at 283.9.
To start the week, the rupee ended its nine-day winning streak by closing in the red.
It has depreciated by 20.24% so far this calendar year, and on a fiscal YTD basis, it appreciated by 0.74%.
The rupee has decreased overall since January 2023 by almost Rs. 66. It has decreased by more than Rs. 113 versus the US dollar since April 2022.
The PKR has dropped three paisas in value relative to the US dollar based on today’s exchange rate movements.
Pakistan and IMF Relations and Disbursement of Next Tranche
Behind-the-scenes negotiations between Pakistan and the IMF are ongoing as both parties search for mutually agreeable terms of disbursement when the lender’s Executive Board meets next month.
In a significant move, Pakistan has promised the IMF that it will raise the petroleum product tax in the upcoming fiscal year (FY25).
It is anticipated that the targeted levy on petroleum products will increase significantly to Rs. 1,065 billion.
The government has been pushed by the IMF to increase the tax for FY24.
Both sides support raising the levy target as part of the Memorandum of Economic and Financial Program (MEFP) draft, according to sources.
If the IMF approves Pakistan’s second disbursal under its $3 billion bailout agreement, there are signs that the PKR may briefly move into the 270s.
To read our blog on “Pak Rupee increases against US Dollar 5th day in a row,” click here.