The Pakistani rupee fell against the US dollar, falling approximately 0.46% in the early hours of trading on Monday in the interbank market.
Around 11 a.m., the rupee was quoted at 285.96, down Rs1.31 against the US dollar in the interbank market.
The rupee fell 0.3% versus the US dollar in the previous week, closing at 284.65 in the interbank market.
The currency sank in four of the five sessions, with the lone rise coming on Thursday when a finance ministry official announced that the International Monetary Fund (IMF) had indicated that it had received a financial promise from Saudi Arabia.
Rupee falls slightly against US dollar
On Saturday, Finance Minister Ishaq Dar stated that the delay in confirming funds from a friendly country was the primary reason for the delay in the staff-level agreement between Pakistan and the IMF.
The financing confirmation would close Pakistan’s external account shortfall and satisfy the IMF’s final requirement.
The currency is likely to continue under pressure.
Meanwhile, Bilal Azhar Kayani, the Prime Minister’s Coordinator for Economy and Energy, stated on Sunday that the government successfully avoided default and voiced optimism for a rise in foreign exchange reserves as a result of a staff-level agreement with the IMF.
Internationally, the US dollar began the week on the offensive as US jobs statistics indicated a robust labor market, bolstering anticipation that the Federal Reserve will hike interest rates again at its meeting next month.
The dollar index, which measures the US currency against six major counterparts, climbed 0.225% to 102.25, moving away from the index’s two-month low of 101.40 last week.
Oil prices, a crucial indicator of currency parity, remained relatively constant on Monday as investors weighed the potential of tighter supplies from OPEC+ producers beginning in May against fears about slowing global growth, which might reduce the use of fuel.