pakistan rupee
It will be a hectic few days for the PKR as the markets await clarity on the next fund release from the IMF. Image Credit: Gulf News Archive

Dubai: The Pakistan rupee has come under renewed pressure to be at 49.29 to the dirham. It had been at 49.20 levels since the start of the day, with currency analysts saying the dip had to do with possible delays on the IMF’s release of the next tranche of its $6 billion funding.

It was earlier this month that the PKR dropped below its earlier low of 48.50 to the dirham and then breach the 49 mark. “It wasn’t surprising because all of the emerging market currencies were dropping against the dollar after the Russia-Ukraine situation blew up,” said a currency analyst. “In fact, the PKR was relatively untouched, dropping only within a tight range.”

Today’s softening of the rupee has more to do with the country’s internal dynamics. “The Parliament is discussing a motion of no-confidence, while the economy awaits the boost from the next release from the International Monetary Fund,” said a banker. “The pressure on the PKR has to do with any potential delays happening to the funding round.”

It was last year that the Pakistan Government and the IMF reached an agreement whereby the latter would release $6 billion under an EFF (Extended Fund Facility) programme.