Pakistani rupee loses ground against dollar after 11 days of appreciation

The Pakistani rupee (PKR) finally lost for the first time since July 28, falling by 0.46 per cent to close at Rs214.88 against the US dollar.

The PKR was down by Rs1.01 or 0.46 per cent versus the US dollar at around 1:00pm, when it was quoted at Rs214.91.

In the interbank market on Tuesday, the local currency edged up slightly versus the US dollar, ending the day at Rs213.90, an increase of 0.04 per cent or Rs0.08. The rupee managed to increase for the eleventh session in a row, despite the smaller volume of the advance.

Remittances to Pakistan totaled $2.52 billion on Tuesday, with a small month-over-month dip reported.

It is worth noting that PKR has increased by 11 per cent this month, making it the world’s top gainer against the greenback. On the other hand, the stock index climbed by 9 per cent, making it Asia’s second-best performer behind Sri Lanka.

In order to get the IMF’s approval to resume its stalled bailout programme, Pakistan enacted austerity measures. This comes as frontier countries from Egypt to El Salvador struggle with the possibility of default.