Rupee extends loses, closes at 207.99 against US dollar

• Rupee sheds Rs1.05, or 0.50%, against the US dollar in interbank market.
• Currency dealers believe rupee erased previous sessions’ gains by tracking importers’ dollar demand due to Eid holidays.
• Since July 1, 2021, rupee loses 32.02% compared to the previous fiscal year’s close at Rs157.54.

KARACHI: The Pakistani rupee Wednesday continued to lose value as it shed Rs1.05 against the US dollar in the interbank market as demand for the greenback increased ahead of the Eid ul Adha holidays.

According to the State Bank of Pakistan (SBP), the local currency closed at Rs207.99 against the US dollar in the interbank market after losing 0.50% of its value compared to last day’s close of Rs206.94.

Moreover, the rupee-dollar parity was buffeted by concerns of a delay in the revival of the International Monetary Fund (IMF) loan programme.

The market players fear the Punjab government’s provision of power subsidies to the poor consumers could jeopardise Islamabad’s progress made towards unlocking the suspended bailout.

Currency dealers believe the rupee erased previous sessions’ gains by tracking the importers’ dollar demand due to the long holidays for Eid. All financial markets will remain closed from Friday to Tuesday for Eid ul Adha.

Since the beginning of the last fiscal year (July 1, 2021), the rupee has dropped by a massive 32.02% (or Rs50.54) compared to the previous fiscal year’s close at Rs157.54.