Rupee rout enters third day as economic uncertainty deepens

ISLAMABAD: Pakistani rupee’s retreat entered its third day in the interbank market as traders pinned this downtrend to lean foreign exchange reserves amid rising imports, while the decline was also attributed to a delay in the funding from the International Monetary Fund (IMF).
The local unit closed at 224.16 against the US dollar in the interbank market registering a decline of 0.02% compared to Tuesday’s close of 224.11, the State Bank of Pakistan’s (SBP) data showed. Sentiments in the currency market remained negative due to depleting foreign exchange reserves and a growing external funding gap.
The largest concern is the repayment of external debt, even though the current account deficit is decreasing as a result of currency depreciation and other tightening measures.Moreover, investors are keeping a close watch on the developments from the International Monetary Fund (IMF).-PNP