Rupee weakens for second straight day

Pakistani currency dropped Rs0.09 and closed at Rs278.39 against the US dollar in the inter-bank market on Tuesday, maintaining its downturn for the second consecutive day amid the International Monetary Fund (IMF)’s recommendation to let the rupee devalue further. According to the State Bank of Pakistan (SBP)’s data, the rupee had closed at Rs278.30 against the greenback on Monday. The IMF has recently assumed that the Pakistani currency will depreciate to Rs329/$ by the end of June 2025, a drop of around 18% over the next 13 months. Market talk suggests the US dollar had also strengthened against major global currencies, which mounted pressure on the Pakistani rupee. In addition, the demand for dollars has ticked up following a gradual increase in imports of goods and services compared to supply of the greenback.