The Pakistani rupee (PKR) declined for the third consecutive session on Monday due to depleting foreign exchange reserves and uncertainty around the renewal of the International Monetary Fund (IMF) program.
The PKR lost 0.48 percent of its value against the US dollar on the interbank market.
According to the State Bank of Pakistan, the rupee closed the day at Rs187.53, down 90 paisas, or 0.48 percent (SBP). Friday’s final rupee value was Rs186.63, a decrease of 0.5 percent.
Considering the most recent depreciation, the local currency is only 65 paisas away from its all-time low of Rs188.18 on April 7, 2022.
On Monday, oil prices sank alongside markets, dragged down by a strong dollar and demand concerns emanating from China’s ongoing coronavirus lockdowns.
According to Tahir Abbas, head of research at Arif Habib Limited, the uncertainty surrounding the IMF is the primary driver of the rupee’s drop versus the dollar.
Uncertainty around the program increased the selling pressure on Pakistani stocks, which declined throughout the day.