Pakitan rupee’s slide against the dollar entered its sixth day, falling 0.11 percent in interbank trade due to low foreign exchange reserves and subdued default concerns.
The SBP’s foreign reserves decreased to $6.7 billion on December 2. As a result, the country struggles to meet external financial needs due to dwindling reserves. According to the State Bank of Pakistan, the rupee closed at 224.65, losing Re0.25.
In the open market, dealers don’t expect the rupee to recover until Saudi Arabia releases development funds. Dealers are particularly worried about the illegal market, where the dollar trades for above Rs240 to 250.
Foreign reserves are at their lowest level over four years, covering only a month of imports.
They said the market will likely absorb shocks from low foreign exchanges due to the reserves because the central bank has taken measures.
In a recent podcast, SBP Governor Jameel Ahmad stated Pakistan would continue to make timely loan payments, and inflows would rise in the second half of the fiscal year.
