The US dollar gained eight paisas value in interbank trading against the Pakistani Rupee, reaching Rs278.45.
The financial experts said that despite the interest rate being decreased by 1.5 percent by the central bank, the local unit is under pressure in the wake of the upcoming budget and the release of the Pakistan Economic Survey 2024.
Read more: State Bank slashes interest rate to record 20.5%
The State Bank of Pakistan Monetary Policy Committee (MPC) on Monday reduced the policy rate by 150 bps to 20.5 percent, effective from June 11, 2024.
The MPC noted that while the significant decline in inflation since February was broadly in line with expectations, the May outturn was better than anticipated earlier.
The Committee assessed that underlying inflationary pressures are also subsiding amidst tight monetary policy stance, supported by fiscal consolidation.
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