The Pakistani rupee depreciated against the US dollar on Wednesday, falling 0.7% during interbank trading a day after experiencing huge gains.
Around 12:30 pm, the rupee was trading at 277.45, a Rs2.01 decline.
On Tuesday, the Pakistani rupee gained ground against the US dollar, rising 3.83% in the inter-bank market to end at 275.44, thanks to the agreement inked with the International Monetary Fund (IMF).
In a similar move, Moody’s Investors Service warned on Tuesday that despite the IMF’s staff-level agreement, Pakistan’s government’s liquidity concerns remain significant.
Internationally, the US dollar remained towards the middle of its three-week range against key rivals on Wednesday, as traders awaited the release of minutes from the Federal Reserve’s most recent meeting for clues about the direction of monetary policy.
The dollar index, which measures the currency against a basket of six major peers, including the euro and the yen, was barely changed at 103.02, after trading in a range of 103.75 to 102.75 since early June.
Oil prices, a crucial measure of currency parity, fell on Wednesday, reducing the previous day’s gain, as concerns about a global economic downturn denting fuel demand overcame predictions of tighter supply owing to August output restrictions planned by main exporters Saudi Arabia and Russia.