Rupee extends losses for second day

KARACHI: The rupee continued to decline for the second consecutive session against the dollar in the interbank market on Wednesday.

The rupee closed at 281.7 per dollar, slightly down from 281.67 in the previous session. In the open market, the rupee also fell in its value, trading at 283.72 against the dollar, compared with 283.69 on Tuesday.

Dealers said the local unit remained under pressure despite prevailing positive sentiment surrounding Pakistan’s economy after the central bank received a $1 billion loan tranche under the $7 billion bailout programme.

“The IMF Executive Board completed the first review under the Extended Fund Facility (EFF) in its meeting held on May 9, and approved disbursement of SDR 760 million for Pakistan,” the State Bank of Pakistan said in a statement.

“Accordingly, the SBP has received SDR 760 million ($1,023 million) in value May 13 from the IMF. The amount will be reflected in the SBP’s foreign exchange reserves for the week ending on May 16,” it added.

Analysts said the IMF’s loan disbursement reflects the ongoing support from the global lender and provides the government with some breathing space to address external pressures. This will help bolster the foreign exchange reserves, aiding in maintaining the rupee’s stability against the dollar. With this approval, total disbursements under the 37-month Extended Fund Facility have reached $2.1 billion.