The rupee slightly depreciated on Wednesday to settle at Rs 176.22 against the greenback in the interbank market compared to the previous close of Rs 176.18.
The Pakistani rupee had previously gained ground against the US dollar, ending at 175.92 on Monday in the interbank market.
A weak dollar demand for import payments and exporters’ ahead selling of the greenback aided the rebound.
The rupee concluded the day with a loss of 0.02 percent, or 4 paisas, against the US dollar, according to figures released by the State Bank of Pakistan (SBP).
Read more: High trade breaks four-day losing streak of rupee against dollar
The rupee has maintained the downtrend for the past eight months. It has lost 15.72% (or Rs 23.95) to date, compared to the 22-month high of Rs 152.27 recorded in May 2021.
Because of increasing dollar liquidity from export revenues this week, traders predict the Pakistani rupee would remain firm against the greenback.
On the other hand, investors are anticipated to remain skeptical until the International Monetary Fund (IMF) reviews its $6 billion loan programme later this month.
“Although the rupee has room to consolidate its gains over the Us dollar due to heavy inflows from exporters and remittances, and insignificant importer demand,” a currency dealer said, “we expect traders and investors to trade cautiously as traders and investors anticipate much farther clearness on the IMF side.”
After hitting an all-time high of Rs 178.24 on December 20, 2021 against US dollar, the local currency has rebounded around 1.32 percent.
The rupee has depreciated by 11.66 percent (or Rs 18.38) from the beginning of the current fiscal year on July 1, 2021, according to data issued by the central bank.
