KARACHI: On Monday, the Pakistani rupee lost ground to the US dollar on both currency markets.In the interbank market, the rupee ended the day at 277.64 to the US dollar, down from 277.51 on Friday. On the open market, the rupee saw a small decrease. It was down from 279.66 during the previous session to 279.69 per dollar at the time of trading.
Dealers stated that the local unit lost ground because of a spike in importers’ dollar demand, which generally rises at the beginning of the week."We expect the rupee to trade range-bound in the coming sessions as there are enough dollars available on the market to satisfy importer demand," a currency dealer stated.
The real effective exchange rate is stabilising, foreign exchange reserves are rising, and import demand is falling.each of these is advantageous to the currency. As of September 27, Pakistan's foreign exchange reserves have risen to a level not seen in the previous 2.5 years, consequent to the country receiving the first installment of a $7 billion loan from the International Monetary Fund (IMF).
The State Bank of Pakistan's (SBP) reserves reached a record high of $10.7 billion, up $1.168 billion from April 2022. The reserves held by the SBP are sufficient to cover imports for more than two months. The IMF gave the SBP $1.03 billion last week as the first installment of a $7 billion loan.
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