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The rupee suffers significant losses during the pre-monetary policy session.

The Pakistan rupee fell against the US dollar on Monday, ahead of today’s monetary policy announcement and speculation surrounding the International Monetary Fund (IMF).

According to State Bank of Pakistan data, the rupee fell 2.01 percent against the dollar in the interbank market, closing at 216.66, down from 214.65 on Friday (SBP).

During the previous week, the greenback traded at 213-214. On Monday, it was 213.98 per dollar, and on Friday, it was 214.65. Last week, the rupee fell 0.31% against the US dollar.

A trader told The News that, aside from forex inflows and outflows, the monetary policy decision will be crucial in determining the rupee’s future direction.Another factor that weakened the rupee was a lack of greenbacks in the open market, which increased the rate of the dollar’s interbank price. The government lifted a ban on the import of non-essential and luxury goods in order to meet an IMF condition before the board’s meeting later this month to restart the loan programme.

To discourage imports, it announced the imposition of heavy duties on fully assembled vehicles, mobile phones, and electronic appliances. According to traders, the market will also assess the impact of opening up luxury imports on the rupee. Foreign currency reserves have begun to recover.

The central bank’s foreign reserves increased by $67 million, or 0.9%, to $7.9 billion as of August 12.