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Wednesday February 21, 2024

Rupee hits one-month low

By Our Correspondent
May 10, 2022

KARACHI: Rupee hit a fresh low on Monday as looming uncertainty over the resumption of International Monetary Fund loan programme took a toll on the local unit, dealers said.

In the interbank market, the rupee closed at 187.53 to the dollar, its lowest since April 7. It ended at 186.63 in the previous session. The local unit fell by 0.48 percent. The domestic currency lost two rupees to settle at 189 per dollar in the open market. It closed at 187 on Friday.

Dealers said the delay in the IMF programme, lack of immediate financial support from friendly countries, depleting foreign exchange reserves and surging trade deficit kept pressure on the domestic currency. “The new government is still unwilling to remove the subsidies on fuel and electricity agreed with the IMF which is deteriorating the situation, affecting investor sentiment,” said a currency dealer.

“Investors were concerned about the falling foreign currency reserves and growing external debt payments and soaring imports. This is putting pressure on the rupee,” he added. There is also ambiguity over the financial support from Saudi Arabia, UAE and China. Political temperature was also rising following the former Prime Minister Imran Khan's announcement that he would march with his supporters to Islamabad on May 20 to demand new elections.