Rupee suffers major loss on eve of IMF talks

As the first review under the IMF’s $3bn Stand-By Arrangement is set to start on Thursday (today), the rupee maintained a downward trajectory on Wednesday against the US dollar creating uncertainty about the future trend. The greenback has been appreciating for the last eight sessions but the appreciation of Rs1.18 on Wednesday shook the confidence of the importers and exporters as well. Some currency experts blame banks for reversing the exchange rate trend to make money by increasing the dollar rates. “This is a false allegation. It is a matter of supply and demand. The supply is shrinking while the demand is on the rise pushing the dollar price,” said Atif Ahmed, a currency dealer in the interbank market. The State Bank of Pakistan (SBP) reported the closing price of the dollar at Rs282.65 from Rs281.47 a day earlier, a depreciation of 0.42 per cent.