Rupee resumes downward spiral against US dollar

• Rupee resumes its slide against US dollar, falling around 0.29% to reach Rs170.51 in inter-bank market.
• Analysts predict that local currency is expected to depreciate against dollar in ongoing week due to a lack of affirmation by IMF.
• Traders are concerned about Pakistan’s external sector and overall country’s economic health.

KARACHI: The rupee on Monday resumed its slide against the US dollar, falling around 0.29% to reach Rs170.51 in the inter-bank market.

Analysts predict that the local currency is expected to depreciate against the dollar in the ongoing week due to a lack of affirmation by the International Monetary Fund (IMF) on its $6 billion worth Extended Fund Facility, and importers' demand for the greenback.

“The rupee may reverse its rally next week because we expect to see an increased demand for dollars from manufacturing and oil importers,” a foreign exchange trader said.

“Any continuation of the deadlock on the IMF’s deal about granting the central bank’s complete autonomy will hurt investor sentiment, putting pressure on the rupee in days ahead.”

Traders are also concerned about Pakistan’s external sector and the overall country’s economic health.