Rupee hits two-week low in inter-bank trade

Pakistani currency on Wednesday ticked down Rs0.08 and closed at a two-week low at Rs278.26 against the US dollar in the inter-bank market apparently on the back of speculation that the government would let the rupee depreciate further to win the next International Monetary Fund (IMF) loan programme by July 2024. According to the State Bank of Pakistan’s (SBP) data, the rupee had closed at Rs278.18 against the greenback on Tuesday. Market speculation suggests the currency may experience a notable depreciation to meet IMF’s conditions for a new loan package. In addition, the lender has asked the government to liberalise imports of raw material to give a big push to economic activities, which will increase demand for the greenback. Pakistan has initiated talks with the IMF for securing a larger loan programme of around $6-8 billion for three to four years.