The Pakistani rupee posted small losses against the US Dollar today after opening trade at 284 in the interbank market.

At 11:30 PM, it was largely stable against the greenback during intraday trade.

The interbank rate remained on the same level before anchoring trends for the remainder of the day. Open market rates across multiple currency counters stood in the 283-285 range today.

At close, the PKR depreciated by 0.01 percent to close at 283.9 after losing three paisas against the dollar today.

The rupee closed in the red ending its 9-day winning streak to open the week today. On a calendar year-to-date basis, it has so far depreciated by 20.24 percent and appreciated by 0.74 percent on a fiscal YTD basis.

Overall, the rupee is down nearly Rs. 66 since January 2023. Since April 2022, it is down over Rs. 113 against the greenback. As per exchange rate movements seen today, the PKR has lost three paisas against the dollar.

Pakistan’s talks with the International Monetary Fund continue behind the scenes as both sides look for agreeable terms of disbursal when the lender’s Executive Board convenes next month. In a key development, Pakistan has assured the IMF that it will increase the levy on petroleum products in the next financial year (FY25). The targeted levy on petroleum products is set to rise substantially to Rs. 1,065 billion.

The IMF has urged the government to raise the levy for FY24. Sources remarked that as part of the Memorandum of Economic and Financial Program (MEFP) draft, both sides are in favor of elevating the levy target.

Looking ahead, there are indications that the PKR could move into the 270s on a short-term basis if the IMF approves its second disbursal under Pakistan’s $3 billion bailout agreement.