The rupee weakened by Rs3.78 against the dollar in the interbank market on Tuesday amid waning euphoria surrounding the agreement with the International Monetary Fund (IMF).

According to State Bank of Pakistan, the dollar closed at Rs283.04, 1.34 per cent higher than yesterday’s Rs279.26.

Recent inflows from the IMF, Saudi Arabia and the United Arab Emirates had changed the sentiments during last week but the dollar’s appreciation on Friday indicated the return of the greenback’s domination.

Currency dealer Zafar Paracha said that after the loan agreement with the IMF and the commercial loans from Saudi Arabia and the UAE, analysts had expected the dollar rate to fall by Rs2.

“But a hype was created, of manipulation and speculation,” he said, lamenting that the local currency was treated as a mere company at the stock exchange.

“As a result, local and foreign investors are disheartened which inevitably reduces investment and also degrades our [credit] rating,” he said.

He pointed out that Pakistan had several debt obligations for this year and next year and called for “acknowledging the truth”. He urged the authorities to constitute long-term policies and for restructuring existing ones.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Trump 2.0
Updated 07 Nov, 2024

Trump 2.0

It remains to be seen how his promises to bring ‘peace’ to Middle East reconcile with his blatantly pro-Israel bias.
Fait accompli
07 Nov, 2024

Fait accompli

A SLEW of secretively conceived and hastily enacted legislation has achieved its intended result: the powers of the...
IPP contracts
07 Nov, 2024

IPP contracts

THE government expects the ongoing ‘negotiations’ with power producers aimed at revising the terms of sovereign...
Rushed legislation
Updated 06 Nov, 2024

Rushed legislation

For all its stress on "supremacy of parliament", the ruling coalition has wasted no opportunity to reiterate where its allegiances truly lie.
Jail reform policy
06 Nov, 2024

Jail reform policy

THE state is making a fresh attempt to improve conditions in Pakistan’s penitentiaries by developing a national...
BISP overhaul
06 Nov, 2024

BISP overhaul

IT has emerged that the spouses of over 28,500 Sindh government employees have been illicitly benefiting from BISP....