The US dollar appreciated by Rs2.44 to Rs287.09 against the rupee in the interbank market on Monday.The State Bank of Pakistan (SBP) reported the dollar settled at Rs287.07 while the exchange companies quoted the closing price at Rs289.10 for the interbank market.
The market remained normal with continued stress for importers to open letters of credit. However, the fluctuations in the exchange rate were due to news about the IMF — sometimes positive and sometimes negative.
Currency dealers in interbank and open markets hardly trust the government statements that the IMF is about to release the $1.1 billion tranche.
Depressed market sentiment is another key reason for the day-to-day depreciation.
The local currency has lost 54pc of its value against the US dollar since the start of FY23, sharply squeezing purchasing power of consumers amid unprecedented inflation of 35.4pc.
The open market reported the dollar price at Rs289.10 compared to Rs286.50 the previous day.