After making minor gains on Friday, the Pakistani rupee came under fresh pressure against the US dollar on Monday, falling by 0.30 percent in the interbank market. The rupee decreased by Re0.84 to settle at Rs281.61, according to the State Bank of Pakistan (SBP).
The rupee had some relief on Friday as the interbank market saw a 0.54 percent increase; however, the previous week saw a 0.82 percent decline in the value of the rupee relative to the US dollar.
The SBP has received inflows from China, which have helped to stabilise crucial levels of foreign exchange, but worries over the IMF programme’s delay have persisted and affected sentiment.
Former Federal Finance Minister Miftah Ismail stated on Sunday that Pakistan should guarantee a 15% tax rate on GDP and a 15% export share of GDP in order to obviate the need for IMF programmes.
Due to the abrupt failure of Silicon Valley Bank, the US dollar saw a steep fall on Monday in other markets (SIVB). The US government made a number of announcements on Monday to lessen the effects of the bank’s failure, including securing access to deposits for SVB clients and Signature Bank depositors in New York.