Rupee inches down

KARACHI: The rupee on Wednesday edged lower against the dollar in the interbank market on a negative sentiment because of a delay in IMF funding and depleting foreign reserves, dealers said.

The local unit ended at 224.16 per dollar, compared with Tuesday’s close of 224.11.

In the open market, the domestic currency lost 50 paisas to close at 232 versus the greenback.

Dealers said the rupee saw a little fluctuation during trade as the demand and supply of the greenback was almost matched. However, a delay in the International Monetary Fund’s (IMF) inflows and dwindling foreign reserves continued to weigh on investor sentiment.

“The rupee has been losing its value, but at a slow rate, as a result of the central bank's import-control measures. However, unless there is good news about the IMF's bailout package, the domestic currency will continue to be under pressure,” said a currency dealer.

Finance Minister Ishaq Dar has assured that the country will successfully complete the IMF programme. The country is in desperate need of external financing as the IMF's review for the disbursement of its next tranche of funding has been delayed since September.

Pakistan has informed the IMF that it expects to receive $32 billion in foreign funds for the current fiscal year. The estimates include budgetary loans of $23 billion, grants of $1.5 billion, and balance of payments support of $6 billion by the IMF and the United Arab Emirates, according to media reports.