Rupee at Rs279/$ as IMF review looms.

KARACHI -- Ahead of the upcoming International Monetary Fund (IMF) economic review, the Pakistani rupee weakened slightly to close above Rs279 against the US dollar in the interbank market. This depreciation is attributed to the increased demand for foreign currency to cover imports and repay maturing foreign debt.

Data from the State Bank of Pakistan (SBP) indicates that the local currency fell by Rs0.32, or 0.11%, to reach Rs279.12 against the US dollar on Monday. Over the past week, the rupee's exchange rate has been fluctuating around this level, according to market sources.

This currency fluctuation is seen as a precursor to the IMF's first review of the domestic economy under its ongoing $3 billion loan programme in November 2023.

Previously, the rupee had witnessed a remarkable recovery, strengthening by over 11% or Rs30 in the past six weeks, reaching a three-month high at Rs276.83/$. It had hit a record low of Rs307.10/$ on September 5, 2023.

In the open market, the rupee also dipped, losing 0.18% or Rs0.50 against the US dollar on a daily basis, as reported by the Exchange Companies Association of Pakistan (ECAP).

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