Dollar trashes rupee to record low of Rs212; hits 216 in open market

F.P. Report

KARACHI: The US dollar has continued its upward trajectory as it has gained a massive Rs2.04 in its value against Pakistani rupee in the interbank trading delivering it a heavy blow on Tuesday.

As the trading ended on Tuesday, the dollar lost some steam and depreciated by 25 paisas and was traded at Rs209.71 in the morning. But soon after its slight ease, the American currency roared back and gained Rs2.04 in the morning trade activity and touched the highest mark of Rs212. However, in the end the greenback settled at Rs211.48 after gaining Rs1.52.

The situation was even worse in the open market, where the US dollar gained Rs2.50 in its value and hit the Rs216 mark.

Yesterday, the rupee was sharply depreciated by Rs2.55 and the US dollar reached Rs210.03 against Friday’s close of RS207.75. But later towards the close, the US currency was slid to Rs209.96.

Financial experts said that the uncertainty over the deal with the International Monitory Fund (IMF) was putting pressure on the local currency.

After the installation of the new government, the US dollar has appreciated by Rs29.99. On April 12, 2022, the dollar rate was Rs182.01.

Finance Minister Miftah Ismail stated on Monday that Pakistan would reach an agreement at staff-level with the International Monetary Fund in a day or so for the revival of the Extended Fund Facility (EFF).

Speaking to reporters after a meeting of the Senate standing committee on finance, the minister said he hoped to reach an agreement in a day or so with IMF staff on the revival of its programme that had been suspended after the previous government reneged on its commitments.

Pakistan is facing a very serious dip in forex reserves as the State Bank of Pakistan’s reserves have fallen by another $234 million to close just below $15 billion. The central bank’s share in these reserves is just under $9 billion.

The depleting forex reserves coupled with enormous import bill is putting pressure on Pakistani rupee.

The economic experts believe that the chances to get IMF’s $1 billion tranche which has been stalled since April and any updates on the fresh rollover of $2.5 billion from China could help stabilize the exchange rate.