Karachi: Rupee registered losses against dollar, depreciating 0.26 percent in inter-bank market. At close, domestic unit settled at 286.56, loss of 0.74 paisa as per State Bank of Pakistan.

In open-market, dollar hit record level of 306 against rupee. At close, dollar settled at Rs 305, up by Rs 4 as compared to Rs 301 on Friday.

An incessant delay in reaching staff-level agreement with International Monetary Fund, uncertainty on political front and rising noise over Pakistan’s perceived default risk mean rupee is likely to remain under pressure. Zafar Paracha General Secretary Exchange Companies Association of Pakistan in video message said, “Moreover, customers are not approaching open-market owing to current political scenario, which has worsened situation.”

“We expect that dollar rate would increase further amid continuous delay in resumption of International Monetary Fund programme,” said Paracha.

Globally, nursed losses against yen and euro on Monday following surprise breakdown in US debt ceiling negotiations and after Federal Reserve chair Jerome Powell indicated preference to slow rate hikes.

Dollar index which measures US currency against six major peers, edged 0.04 percent lower to 103.00, after reaching 103.63 last week for first time since March 20.

Published in The Daily National Courier, May, 23 2023

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