KARACHI: The rupee weakened on Wednesday, edging down 0.02%, as investors remained cautious ahead of an International Monetary Fund (IMF) review scheduled for January 28.
The local currency closed at Rs176.22 against the greenback in the interbank market compared to the previous close of Rs176.18. It lost 0.02% during the session.
Currency dealers believe that the rupee lost ground, despite some positive news that came on the economic front.
The rupee has lost a fresh 0.02% since the start of the fiscal year on July 1, 2021, depreciating 11.85% (or 18.68 rupees), data released by the central bank showed.
The rupee has been on a downward trend for the past eight months. It is down 15.72% (or Rs 23.95) so far from its 22-month high of Rs 152.27 in May 2021.
However, analysts expect the local currency to appreciate in the short term amid expectations of Pakistan’s resumption of a three-year $6 billion IMF program and other positive developments.
There has been clarity on the IMF front post-approval of the mini-budget from the national assembly. Moreover, the measures taken by the State Bank of Pakistan (SBP) and inflows from exporters and remittances have also supported the rupee in recent days.
Remittances from overseas Pakistanis maintained an upward momentum and hit the highest level for the six months in July-December FY22. Remittances rose 11.3% to $15.8 billion in the first half of this fiscal year.