Rupee continues to depreciate, settles at 222.41

Pakistan's rupee continued to depreciate against the US dollar, falling 0.22% on Wednesday in the inter-bank market. As per the State Bank of Pakistan (SBP), the rupee closed at 222.41 after a depreciation of Re0.50. On Tuesday, the rupee had registered a decline for the third consecutive session, and settled at 221.91 after a dip of Re0.22 or 0.1%.

The fall comes amid reports that the International Monetary Fund (IMF) Staff Mission is expected in Islamabad by the end of the month but the date has not yet been finalised as the Fund wants Pakistan to first make some adjustments.

Owing to uncertainty over IMF review, Pakistan's perceived risk of default, measured by the 5-year credit default swap (CDS), also worsened and hit 75.5%.

Internationally, the US dollar on Wednesday traded just above multi-month lows against most majors as flows that had supported the safehaven currency slowed after President Joe Biden said a missile that caused an explosion in Poland may not have been fired from Russia. Biden said early information suggested the blast in Poland may not have been caused by a missile fired from Russia, even as the United States and its NATO allies investigated the blast, which killed two. -APP