The Pakistani rupee fell further against the US dollar during trade on Monday, dropping 0.3%.
At 12:45 a.m., the rupee was trading at 296.64, down Re0.86 in the interbank market.
The rupee depreciated by 2.5% in the previous week, finishing at 295.78 against the US dollar in the interbank market.
This was the currency’s weakest closing level since May 11, and it was also dangerously close to the all-time historic low against the US dollar in the interbank market.
However, its decline meant that the gap with open-market rates narrowed, which had previously been a source of concern because the International Monetary Fund (IMF) had recommended a 1.25% differential in its country report after the Stand-By Arrangement.
The rupee is projected to stay under pressure in the coming days, as foreign exchange inflows appear to have dried up.
Globally, the US dollar began the week on a strong note, following five weeks of gains, as investors looked ahead to the Federal Reserve’s Jackson Hole symposium for clues on where rates may settle once the dust of this raising cycle settled.
Last week, the dollar gained 0.7% against the euro, 0.1% against the yen, and more than 1% against the Antipodean currencies as US Treasury yields jumped in anticipation of interest rates remaining higher for longer.
Oil prices increased on Monday as global supply tightened due to fewer exports from Saudi Arabia and Russia, countering lingering concerns about global demand growth amid high-interest rates.
