Rupee's bleed worsens, plummets to new low of 288 versus dollar

A foreign currency dealer counts US dollars at a shop in Karachi on March 02, 2023. — INP

Uncertainty about the IMF program is weighing on the Pakistani rupee

The Pakistani rupee hit a new low against the US dollar on Tuesday, crossing the threshold of 288 against the US dollar in the interbank market.

In the interbank market, the local unit was trading at 288, 1.03 percent or 2.96 rupees against the US dollar, down from Monday's close of 285.04.

Last month, the rupee hit an all-time low and closed at Rs 285.09 against the dollar on February 3, 2023.

Financial experts believe that importers have resumed buying US dollars in panic while the currency supply in the interbank market is low.

Months after raising taxes, raising energy prices and devaluing its currency to meet IMF conditions, Pakistan's lending program has yet to materialize. The country has missed several deadlines to resume aid.

The IMF representative in Pakistan said the country needs to fulfill several other tasks to meet the $6.5 billion in aid. Lenders last month approved a $3 billion loan program to ease the economic crisis in Sri Lanka.