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KARACHI, (MANEND NEWS): The Pakistani rupee on Monday maintained its downward streak and plunged to 200.50 against the US dollar in the interbank market amid concerns regarding the upcoming budget 2022-23 and the revival of the multibillion-dollar International Monetary Fund (IMF) programme.
Today’s downtrend was followed by a reversal on Friday in the rupee’s momentum as it shed 0.17% to close at Rs197.92 against the US dollar in the interbank market.
Since the start of this fiscal year on July 1, 2021, to date, the rupee has collectively dropped by over 25%, or Rs40, compared to the previous fiscal year’s close at Rs157.54.
Traders believe caution can be expected this week ahead of the unveiling of the Budget 2022-23 scheduled for June 10 (Friday), with investors expecting IMF conditions of fiscal consolidation to dominate.
Renewed pressure on the rupee on an increase in fiscal-year-end dollar demand from importers and the corporate sector will keep the local currency under pressure.
The report about China’s $2.7 billion deposit placement, meanwhile, has failed to entice traders as they don’t see it as useful for fiscal or external support.
Financial expert Asad Rizvi said that credit rating agency Moody’s had last week downgraded Pakistan’s outlook from stable to negative due to external financing factors, to which the market reacted and the rupee dipped.
The financial expert further added choppy conditions would remain intact until the next fiscal year’s budget and the IMF approves the next tranche of loan for Pakistan.