Rupee Registers Slight Increase Against US Dollar In Interbank Market

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Rupee registers slight increase against US dollar in interbank market


 

The latest reports say that the rupee has gained Re0.03 to close at Rs283.55 in the interbank market, compared to the previous day's close of Rs283.58

KARACHI: (UrduPoint/Pakistan Point News-March 28th, 2023) The local rupee on Tuesday registered a slight increase against the US Dollar in the interbank market on Tuesday.

The PKR gained Re0.03 to close at Rs283.55 in the interbank market, compared to the previous day's close of Rs283.58.

The forex Association of Pakistan (FAP) reported that the buying and selling rates of Dollars in the open market were recorded at Rs285.2 and Rs287 respectively.

Analysts attribute the recent fluctuations in the PKR's value to the delayed IMF bailout program. The International Monetary Fund (IMF) is reportedly urging friendly countries to honor their commitments to fund Pakistan before approving a $6.5 billion bailout program. A staff-level agreement between the IMF and Pakistan was initially scheduled for February 9 but has yet to take place.

The Shehbaz Sharif-led government has taken measures to secure funds, but the IMF is reportedly unsatisfied with their efforts thus far. Pakistan is now seeking written assurances from Saudi Arabia and the United Arab Emirates (UAE) regarding external financing to meet the IMF's conditions.

Sources with knowledge of the situation claim that the IMF has demanded that Pakistan increase interest rates by 4%. The fund believes that inflation is lower in Pakistan than the current interest rate reflects, and has pressured Islamabad to raise interest rates by an additional 2% after a recent 2% increase by the SBP.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.