KARACHI: Rupee lost value slightly against dollar as market is looking for direction amid government’s ongoing tough parleys with International Monetary Fund (IMF). Dollar closed at Rs 268.83 in interbank after domestic unit lost Rs 0.94, according to data from State Bank of Pakistan.

Capital market expert Saad Ali told  that rupee becoming stable due to two reasons, market’s optimism surrounding continuation of talks between IMF and government and steps government is taking and because an element of speculation is receding from market.

Currency lost Rs 38 or 14.1 percent overall since January 25 compared to last Wednesday’s close of Rs 230.89 to dollar, according to SBP data.

Crisis-hit country is dealing with serious balance of payments crisis and has just about three weeks’ worth of import coverage in foreign exchange reserves. Pakistan is scrambling to secure foreign financing to avoid default.

Analysts estimate this figure to be around $ 2.5 billion. Now having windfall they may not wait for rupee to depreciate further in race to pay back their high-interest money and to quickly procure raw materials before prices jump up, according to Tresmark.

Published in The Daily National Courier, February, 02 2023

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