KARACHI: The rupee closed slightly weaker against the dollar in the interbank market on Monday.The rupee ended at 277.71 against the dollar, down from its previous close of 277.63.
The rupee lost ground after posting an uptick last week, according to dealers. The rupee’s upward momentum was fuelled by optimism following Pakistan’s receipt of over $1 billion from the International Monetary Fund (IMF) as the first tranche of a $7 billion loan. Importers typically have a higher demand for US dollars at the beginning of the week.
According to dealers, there was little indication that the rupee was under pressure from the present geopolitical worries, which include fears that Israeli strikes in Yemen and Lebanon could intensify the crisis in the Middle East.
The rupee increased marginally in the open market. It was trading at 279.94 per dollar, compared with 279.97 in the previous session.The International Monetary Fund’s Executive Board approved Pakistan’s loan programme and issued a statement detailing the country’s economic prospects. The IMF projects Pakistan’s GDP growth at 3.2 per cent, expecting inflation to stay at 9.2 per cent in the current fiscal year.
Pakistan’s economy recorded a growth of 3.07 per cent in the fourth quarter of the last fiscal year, which ended on June 30, 2024. This brought full-year (FY24) growth to 2.52 per cent, surpassing the government’s preliminary predictions of 2.38 per cent announced in May. The agriculture sector is primarily responsible for GDP growth, thanks to higher yields.