The Pakistani rupee (PKR) slipped by 31 paisas against the US dollar on Monday to start the week in the interbank foreign exchange market.
The exchange rate ended at PKR 284.71 to the dollar from last Friday’s closing of PKR 284.40 in the interbank foreign exchange market.
READ MORE: Rupee ends at PKR 284.40 to dollar in interbank market
Currency experts suggest that the local currency was under pressure on the first day of the week due to dollar demand for imports and corporate payments. The recent appreciation of the PKR, which was seen last week, may not have a lasting impact as the rupee value decreased due to negative sentiments brought about by delays in funds from the IMF, political uncertainty surrounding provincial elections, and cancellations of the finance minister’s visit to the US.
READ MORE: US dollar weakens to PKR 284.91 as Pakistan awaits IMF review finalization
Despite seeking loans and financial assistance from international organizations such as the IMF, the country continues to face challenges in managing its foreign exchange reserves and stabilizing the value of its currency. The decline in remittances and depleting foreign exchange reserves are matters of concern for experts, who believe swift measures are needed to stabilize the currency and attract more foreign investment.
READ MORE: Pakistani rupee makes recovery to PKR 286.62 against dollar after historic fall
However, last week, the rupee value increased due to positive sentiments prevailing over the IMF program and recent commitments by Saudi Arabia and the UAE to fund Pakistan. IMF Managing Director Kristalina Georgieva recently announced that Pakistan won’t default and with the implementation of what has been agreed by the Pakistani authorities, the current program can be completed successfully. These statements have helped to alleviate concerns about the country’s financial stability and contributed to the appreciation of the PKR.
READ MORE: PKR falls to historic low at Rs288.43 to dollar amidst volatile conditions
The recent appreciation of the PKR is a positive sign for the country’s economic stability, and experts hope that this trend will continue in the coming days. However, the recent depreciation of the PKR indicates that the country needs to work towards stabilizing its currency and managing its foreign exchange reserves to attract more foreign investment and boost its economic growth.
In conclusion, while the PKR slipping by 31 paisas against the US dollar may not seem like a significant change, it highlights the importance of Pakistan’s economic stability and the need for swift measures to manage its foreign exchange reserves and attract more foreign investment. The recent positive sentiments and commitments by international organizations and other countries to fund Pakistan are welcome news, and it is hoped that the country will continue to move towards economic stability in the future.
