ISLAMABD: The US dollar which started its upward trajectory yesterday has rocketed to a new historic high against the Pakistani rupee smashing all previous records.
According to forex dealers, the US dollar which started the day gently with an increase of 44 paisas later sprinted to the new record level of Rs203.50, up by Rs3.44 during intrabank trading on Tuesday morning.
The situation was no different in the open market, where the US dollar also soared to historic high of Rs205, up by four rupees.
But later in the evening, the dollar lost some of its value and closed at Rs202.83 in the interbank thus shedding 0.67 paisas from its earlier position in the day i.e. Rs203.50.
Yesterday, the Pakistani rupee slumped spinelessly and depreciated by Rs2.25 thus breaching the Rs200 mark once again after getting a buffeting last week. By the end of the trading activity, the dollar rate was closed at Rs200.04 yesterday.
As per forex traders, Pakistani rupee will remain under pressure until the government and international lender IMF will make an agreement.
The situation in the intrabank trading may remain unpredictable and uncertain until the presentation of federal budget as well.
Former treasury head at Chase Manhattan, Asad Rizvi, told Mettis Global — a web-based financial data and analytics portal — that the conditions would remain choppy until the budget and the approval of the IMF for the resumption of its loan facility for Pakistan.
Moreover, he said, “Moody’s on Thursday downgraded Pakistan’s economy’s outlook from stable to negative due to the external financing factor, and the market reaction saw the PKR dipping. Closure of market in the Middle East also added pressure.”