KARACHI: Pakistani rupee continued to fall against the US dollar, closing at its all-time weakest level in the inter-bank market after even hitting 176 in intra-day trade on Friday.
In the open market, meanwhile, the dollar rose by Rs1.70 and was being traded at Rs178 around 12:30pm. The historic low comes barely two weeks after the rupee had closed at its then-lowest level of 175.27 against the dollar in the inter-bank market.
Meanwhile, Mettis Global — a web-based financial data and analytics portal — quoted Asad Rizvi, the former treasury head at Chase Manhattan bank, as saying: “PKR that was holding up relatively well after the news of the Saudi deposit […] in hope of getting the IMF nod lost nearly 440 paisa in nine days due to delay.”
The currency has been under immense pressure in recent days as uncertainty over the International Monetary Fund (IMF) programme rattles market participants. A higher import bill, widening current account deficit, and inflationary concerns have added to the currency woes.
The inter-bank market mostly meets the demand for import payments through receipts of export earnings and workers’ remittances sent home by overseas Pakistanis. The rupee has maintained the downtrend for the past five months. It has lost 15.4% (or Rs23.46) to date, compared to the 22-month high of Rs152.27 recorded in May.
Last week, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin had announced that an agreement with the IMF over the revival of the $6 billion Extended Fund Facility had been reached and a formal accord would be signed later in the week.
