The Pakistani rupee sustained marginal losses against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday.

At close, the currency settled at 285.47, a decline of Re0.12, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee registered a marginal improvement to settle at 285.35 or 0.02% up against the US dollar in the inter-bank.

In a key development, Esther Perez Ruiz, International Monetary Fund (IMF) Resident Representative in Pakistan, while responding to Business Recorder queries identified import curbs as the real culprits hitting the economy.

“Import suppression in Pakistan is inflicting shortages of goods and plant closures, undermining economic activity and revenue collection” said Ruiz.

Replying to another question, the IMF official stated that the financial framework underlying the policies agreed with the authorities is included in the staff report that will be released upon the IMF Executive Board’s approval of ninth review.

The resumption of the IMF programme, which has been stalled since November last year, remains crucial for the cash-strapped economy.

Internationally, the US dollar languished below the psychological 140 yen level on Wednesday after getting knocked back from a six-month high after Japanese officials met on Tuesday to discuss their currency.

The global dollar index rose to 104.283 from the previous close of 104.165.

The focus is now on the US House of Representatives for the debate on debt ceiling legislation and an expected vote on passage on Wednesday.

Oil prices, a key indicator of currency parity, extended losses early on Wednesday as worries of slowing demand from top oil importer China after the release of weaker-than-expected economic data outweighed some positive progress on the US debt ceiling bill.

Inter-bank market rates for dollar on Wednesday

BID Rs 285.45

OFFER Rs 285.55

Open-market movement

In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 308.00 and 311.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 330 and 333 respectively.

Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 84.70 and 85.50, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 82.50 and 83.30, respectively.

Open-market rates for dollar on Wednesday

BID Rs 308.00

OFFER Rs 311.00