Karachi August 19 2022: Pakistan Rupee drops 51 paisa in the interbank against dollar as traders weigh interest rates to remain unmoved in the upcoming Monetary Policy Committee (MPC) meeting amid strengthening of dollar in the international markets.
Majority of the market participants expects interest rates to remain unchanged in the survey conducted by CFA Society Pakistan. 81 percent of the respondents expects no change in the policy rate while 9 percent expects 50 basis points increase and remaining 9 percent foresee interest rates to go up by 100 basis points.
Dollar index gains 0.17% or 0.18 to 107.67 at PST 12: 33 on expectation of more interest rates hikes in the coming FED meeting.
Rupee depreciates by Rs 1.56 or 0.7% in the last two trading session to trade at 215.46 in the interbank at PST 12:30. Still Rupee is up 11.7% from its low hit on 28th of July 2022 as country inching towards IMF deal.
The International Monetary Fund (IMF) Executive Board meeting for the combined seventh and eight reviews under the Extended Fund Facility (EFF) has been set for August 29th 2022, according to IMF representative. Approval of this will release $1.17 billion for Pakistan and provide comfort to other lenders that helps in arranging gross financing needs of $35 billion for this year.
