Pakistan's rupee saw a drop for the third consecutive session, depreciating another 0.15% against the US dollar in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.98 after a day-on-day depreciation of 26 paisas or 0.15%. The fall comes after the rupee depreciated 0.14% and 0.13% against the US dollar on Monday and Tuesday, respectively.

The depreciation comes in the backdrop of the announcement that the International Monetary Fund's (IMF) Executive Board will now meet on February 2 for Pakistan's sixth review under the Extended Fund Facility (EFF). The calendar had earlier shown that the sixth review would be held on January 28.

Pakistan's rupee continues to falter against US dollar

“The postponement of the board meeting created uncertainty and put pressure on the rupee,” Saad Khan, Head of Research at IGI Securities, told Business Recorder.

Following the development, Federal Minister for Finance and Revenue Shaukat Tarin said that Pakistan requested the international lender to postpone the board meeting, while adding that the State Bank of Pakistan (SBP) (Amendment) Bill will be passed from the Senate in the coming days. The SBP (Amendment) Bill is a key condition of the IMF programme.

The currency has remained under pressure this entire week as oil prices edge up, putting pressure on countries dependent on imports to meet demand. Prices have continued to move upwards amid geopolitical tensions in Europe and the Middle East, raising supply concerns while investors locked in profits ahead of updates from the US Federal Reserve and US oil inventory data.

Brent crude futures edged up 0.2% to $88.33 a barrel paring losses earlier in the session. The contract jumped 2.2% in the previous session.

Oil prices are directly related to sentiment around the currency as expensive imports contribute to deterioration in Pakistan's current account.

“In the coming days, the rupee will remain range-bound amid uncertainty owing to oil prices,” added Khan.

Inter-bank market rates for dollar on Wednesday

BID Rs 177

OFFER Rs 177.10

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 178.50 and 179.50, respectively.

Against Euro, the PKR lost 90 paisas for buying and one rupee for selling, closing at 200.50 and 202.50, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 49.31 and 49.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling as well, closing at 46.95 and 47.40, respectively.

Open-market rates for dollar on Wednesday

BID Rs 178.50

OFFER Rs 179.50