Interbank closing: PKR loses 21 paisa against dollar

WEB DESK: In a recent development, the Pakistani rupee experienced a 0.08 per cent depreciation against the US dollar in the inter-bank market on Tuesday, settling at Rs279.57, with a loss of Re0.21, as reported by the State Bank of Pakistan (SBP).

This comes after a stable performance on Monday, where the local unit remained unchanged at Rs279.36 against the greenback, according to SBP data.

Adding to the economic landscape, Fitch Ratings, a global rating agency, highlighted the potential challenges Pakistan may face in securing a new financing agreement with the International Monetary Fund (IMF) due to the recent close outcome of the country’s election and resulting political uncertainty.

Fitch Ratings emphasised that the current $3-billion stand-by arrangement (SBA), set to expire in March 2024, is an interim package.

They anticipate that any successor arrangement would come with more stringent conditions, potentially met with resistance from entrenched vested interests in Pakistan.

On the international front, the US dollar reached a three-month high against the yen on Tuesday, driven by persistent US inflation that supports the case for higher interest rates.

The greenback has maintained levels above 150 yen per dollar for six consecutive sessions, prompting concerns and warnings from Japanese officials aimed at stabilising the currency.

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