KARACHI: The Pakistani rupee resumed its downward trend versus the US dollar following a two-day reprieve, owing to favorable news about the International Monetary Fund (IMF) program.
On Wednesday, the local currency fell 0.42 percent, or 74 paisas, to settle at Rs175.04 in the interbank market.
On November 12, the rupee reached an all-time low of Rs175.73. The local currency has a range of 173-175.
The currency strengthened marginally in the previous two days, according to the expert, due to “sentiments associated with the news surrounding the IMF program.”
The demand and supply of foreign currency in the interbank market determine the rupee-dollar parity.
Demand for foreign currency outstripped supply, indicating a worsening current account imbalance.
It’s worth noting that the central bank has chosen a flexible exchange rate to allow market forces to determine the rupee’s per dollar value based on foreign currency demand and supply.