Rupee takes a hit against dollar in interbank market

• Rupee depreciates by 3.18 against dollar in interbank market. 
• Rupee had closed 279.12 a day earlier.
• ECAP's Zafar Paracha says depreciation may be due to delay in resumption of IMF programme.

The rupee on Thursday took a hit against the dollar during the intraday trade in the interbank market amid further delay in the revival of the loan agreement with the International Monetary Fund (IMF).

The rupee depreciated by Rs3.18 against the dollar and closed at Rs282.30/dollar in the interbank market.

The rupee had closed 279.12 a day earlier. 

General Secretary Exchange Companies Association of Pakistan (ECAP) Zafar Paracha told Geo.tv that there was no major reason behind the depreciation as the market was currently seeing an upward trend.

However, he said that it could be based on the delay in signing a deal with the International Monetary Fund (IMF).

"People will remain in doubt until the government strikes the agreement and until it gets all the payments after approval," Paracha said, adding that the market will remain reluctant till the agreement is secured.

Besides that, there was pressure from the IMF and foreign investors to weaken the local currency so that they can invest.

"They want to close dollar on a maximum rate and make the investments in PIDs or the government securities by 20-22%," he added.