Rupee continues falls; US dollar hits new high at Rs 205

F.P. Report

ISLAMABAD: After yesterday’s slaying of Pakistani rupee, the US dollar is still showing no signs of plummeting as the greenback has gained another Rs1.14 in its value in the interbank trading.

The forex dealers informed that during Tuesday morning trading session, the US dollar showed such a robustness that it again pounded Pakistani currency and appreciated by Rs1.14 as it was traded at historic Rs205.

Yesterday, which was the first business day of the week, the US dollar shattered all previous records with an increase of Rs1.65 and reached Rs204 for the first time in the Pakistan history in interbank trading in the morning. However, by the evening it shed some of its value and closed at Rs203.86 with an increase of Rs1.51.

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 bank. Finance Minister Ismail Miftah’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 shattered the confidence of market which turned red yesterday and lost more than 1,100 points to close well below the 41,000 mark.

Today, again the benchmark KSE-100 index has failed to revive and shed 62 points, with index plunged to 40,817 mark.