Rupee slightly drops for second day

KARACHI: The rupee extended its fall for a second straight session on Tuesday due to a weak supply of dollars and growing concerns that the International Monetary Fund (IMF) might delay approving the new $7 billion loan.

In the interbank market, the rupee ended at 278.41 per dollar, compared with the previous close of 278.3. It depreciated by 11 paisas or 0.04 per cent against the dollar.Dealers stated that lower dollar sales from exporters were insufficient to match importer demand, which caused the local currency to weaken against the dollar gradually.

Exporters are holding off on selling significant amounts of dollars in advance because they want to wait and see what the central bank will announce on Monday regarding its upcoming monetary policy.

There was some concern in the market since, according to reports, the IMF has not yet added Pakistan to the agenda for its executive board meetings this month.Pakistani and the IMF reached a staff-level agreement on a 37-month Extended Fund Facility on July 12.

This deal is subject to the executive board of the IMF approving it and Pakistan’s development and bilateral partners promptly verifying the guarantees of essential funds.According to data issued by the State Bank of Pakistan, Pakistan has attracted $1.3 million in net dollar inflow into T-bills through special convertible rupee accounts (SCRA) in July (till 5th).These inflows reached $581 million in fiscal year 2024.