Rupee extends losses to fourth session

KARACHI: The rupee on Thursday extended losses to a fourth consecutive session amid a dollar crunch and delay in the International Monetary Fund’s loan programme, dealers said.

In the interbank market, the local unit ended at 224.37 per dollar, 0.09 percent weaker than Wednesday’s close of 224.16.

The domestic currency ended the day unchanged at 232 to the dollar in the open market.

Dealers expect the rupee to remain under pressure in the coming sessions.

“The rupee will continue to be under pressure unless friendly countries lend their much-needed assistance and there is encouraging news on the IMF's bailout package,” said a foreign exchange trader.

The rupee has declined 21 percent against the dollar so far in 2022, and there is still a lot of uncertainty surrounding the Pakistani currency, according to analysts.

Since 2019, Pakistan has adopted a market-based exchange rate regime. Despite the fact that the official exchange rate has recently remained in the Rs221-225 range, the black market rate is currently trading at a premium of more than 10 percent at Rs240-250.

“With the exception of a few currencies available to travellers at a premium of 3 percent, there is scarcely any foreign currency supply in that market as a result of the State Bank of Pakistan’s stricter regulations for exchange companies,” analysts said.

The resurgence of the black market has been badly affecting dollar inflows, particularly inward remittances.