Post-Eid: Pak Rupee in Red Against US Dollar After Iran Punishes Israel

The Pakistani rupee reversed last week's gains against the US Dollar after opening trade at 279 in the interbank market. It was bearish against the greenback today as the greenback gained over the weekend following Iran's retaliatory strikes against Israel. The interbank rate stayed at 278 most of the day before closing at the the same level. Open market rates across multiple currency counters were in the 278-279 level today. The PKR depreciated by 0.07 percent to close at 277.93 after losing 19 paisas against the dollar today. On a fiscal year-to-date basis, the rupee has so far appreciated by 2.77 percent. Overall, the rupee is down nearly Rs. 51.85 since January 2023. Since April 2022, it is down Rs. 95.85 against the greenback. As per the exchange rate movements seen today, the PKR lost 19 paisas today. Some traders said the rupee could mark big gains during the week from positive developments coming out of Washington. Finance Minister Muhammad Aurangzeb will meet the International Monetary Fund (I MF) Managing Director Kristalina Georgieva to discuss a new loan program. Any agreements on the sidelines may help the market improve gradually, they said. Last week, the IMF MD said important issues still remain unresolved for Pakistan to unlock a follow-up program to the previous $3 billion stand-by arrangement. She noted that while Pakistan has shown big improvement in its economy and is completing its current program, there are crucial issues that need attention. These issues include expanding the tax base, directing public spending effectively, and fostering transparency. Source: Pro Pakistani