The rupee weakens

KARACHI: The rupee weakened on Tuesday as cautious investors awaited clarification on the government’s actions to secure funding for the IMF lending program.

In the interbank market, the rupee closed at 176.75 to the dollar, up from the previous close of 176.51. It was down 0.14% during the session.

The open market rupee ended unchanged at 179 against the greenback.

The dealers said the rupee has lost ground due to cautious sentiment about the prospects for the country’s economy and that the market is awaiting the outcome of deliberations by the National Assembly.

“The introduction of two important bills, namely the 2021 (Supplementary) Finance Bill and the Bill amended by the State Bank of Pakistan to the National Assembly last week, brought a dose optimism for a currency, but the market and investors are still skeptical of the fate. rupee because there is uncertainty as to whether these two bills will be approved by parliament before the IMF board meeting on January 12, ”said a forex trader.

Likewise, the semi-annual trade balance data has also raised concerns among investors. The trade gap widened 100% to $ 24.78 billion in the first half of this fiscal year due to a sharp increase in imports.