Rupee depreciates to all-time low of Rs151 against dollar in open market
Dollar was traded at Rs149 in the interbank market with an increase of Rs4
KARACHI (Dunya News) – The value of the US dollar against the rupee touched another all-time high for the third consecutive day, reaching approximately Rs151 after gaining Rs4 against the rupee in the open market.
According to details, dollar was traded at Rs151 in the open market, whereas in the interbank market it increased to around Rs149.
On Thursday, Pakistan’s rupee weakened to a record yesterday in an apparent devaluation, four days after the South Asian nation secured a bailout from the International Monetary Fund (IMF) that investors speculate includes tough conditions to reform the economy.
The rupee dropped 3.6 percent, the most in more than five months, to 146.52 a dollar at close on Thursday, according to central bank data. The currency had plunged more than 20 percent in the past year.
With the spike in the rate of US dollar, Pakistan’s foreign debt had increased by Rs588 billion with further rise in inflation being anticipated by analysts.
An exchange dealer explained another factor ‘the demand from Pakistanis planning to spend their vacations abroad after Eid holidays and during school vacations.’ Moreover, some buying has also been witnessed from travelers flying out for performing Umrah.
A few days ago, Prime Minister’s Adviser on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Sheikh announced to have finalised a three-year bailout with the International Monetary Fund (IMF) for $6 billion.
The fall in the rupee’s value comes a day after Prime Minister (PM) Imran Khan set up a committee to control devaluation of the local currency and capital flight from Pakistan.
PM Khan presided over a high-level meeting with an ECAP delegation led by Sheikh Allaudin, Malik Bostan, and Mr Sheikh Mureed, director generals of the FIA and IB, the chairman of the Federal Bureau of Revenue (FBR) and the governor of the State Bank of Pakistan (SBP).
The meeting resolved that strict action will be taken against those responsible for deviating from the ‘actual’ exchange rates of currencies.
