F.P. Report
ISLAMABAD: The Pakistani rupee remained on the chopping block with the US dollar continued to demonstrate its prowess and once again on Wednesday the greenback marched to a new historic high, sinking the Pakistani rupee to a new record low.
The forex dealers informed that during trading on Wednesday the US dollar showed such a robustness that it again thrashed Pakistani currency hard and appreciated by Rs1.04 and was now being traded at the new record level of Rs206.20.
On Tuesday, the US dollar shattered all previous records with an increase of Rs1.30 and ended the day at Rs205.16 for the first time in the Pakistan history in interbank trading.
Economic experts believe that depleting foreign reserves and ballooning current account deficit are main reasons behind rupee’s quick slumping.
They also believe that the new budget also knelled the death bells as government has increased tax on commercial banks. Finance Minister Miftah Ismail’s statement that Pakistan was facing default if the IMF deal had not been secured, also proved fatal for the country’s economy.
Experts believe the negative comments have shaken the confidence of the money market.
