20th consecutive loss: Rupee drops Rs0.32 against US dollar in interbank

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PKR USD

Islamabad: The Pakistani rupee dropped Rs0.32 against the US dollar in the interbank market on Tuesday, taking the total number of losing sessions to twenty.

At the end of today’s session, the State Bank of Pakistan (SBP) said that the local currency depreciated by Rs0.32 or 0.14% against the greenback to close at Rs228.66.

Meanwhile, due to the prevalent political turmoil and the delay in the agreement with the IMF, the Pakistan Stock Exchange (PSX) crashed on Tuesday, shedding 1378.54 points, or 3.47%, to close at 38,342.21 points.

The fall has continued despite Pakistan reaching major agreements with the UAE and Saudi Arabia.

Last week, the United Arab Emirates (UAE) agreed to roll over an existing loan of $2 billion and give an additional loan of $1 billion.

The development was reached during Prime Minister Shehbaz Sharif’s meeting with the President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan.

Similarly, Saudi Crown Prince Mohammed bin Salman also directed authorities to study “augmenting” the Kingdom of Saudi Arabia’s investments in Pakistan to reach $10 billion.

According to the Saudi Press AgencyCrown Prince Muhammad bin Salman also directed the Saudi Development Fund (SDF) to study increasing the amount of the deposit in Pakistan’s central bank to hit $5 billion.

The developments will ease the pressure on Pakistan’s precious forex reserves, which have fallen to the lowest level in nearly nine years.