Friday Jul 29 2022

Rupee snaps 10-day losing streak, records minor gain against dollar

A representational image of Pakistani currency notes. — AFP/File
A representational image of Pakistani currency notes. — AFP/File

  • Rupee registers slight gain against dollar.
  • Closes at 239.37 in interbank market.
  • It registers gain after 10 trading sessions.

KARACHI: The Pakistani rupee registered a minor gain against the US dollar after depreciating for 10 consecutive sessions in the interbank market as the forex reserves continue to deplete.

In the 11th session today, the local unit closed at 239.37 against the dollar, gaining 0.57 or 0.24% — after losing ground and depreciating 13.31% in the last 10 trading sessions.

Analysts have cited the import payment pressure, deepening political crisis, the delay in the International Monetary Fund's loan disbursement, and the depleting foreign reserves as reasons for the dollar's plunge.

The Pakistani rupee has lost more than 30% of its value against the greenback this year and the country’s dollar debt has reached record lows as it stares down to a $1 billion bond payment in December.

The nation is striving to stave off fears it will follow Sri Lanka into default this year with the government working to secure billions of dollars from the IMF and countries like China and Saudi Arabia.

While speaking to Geo News, former finance secretary Dr Waqar Masood said uncertainty in the financial markets increased after Finance Minister Miftah Ismail revealed a gap of $4 billion which the friendly countries would provide. “Earlier, no one knew about it.”

Arif Habib Limited Head of Research Tahir Abbas told that currency pressure continues amid higher dollar demand and outflows — mainly oil-related payments tagged with lower inflows.