ISLAMABAD: The rupee plunged to an all-time low against the dollar after losing Rs1.14, closing at Rs185.2 in the interbank market on Tuesday.
The political situation arising after the dissolution of the National Assembly and the constitutional crisis has put pressure on the rupee which breached the Rs185 mark for the first time ever.
According to reports, the rupee had lost its worth by more than 3 percent or Rs5.4 since March 8, when the no-confidence motion was submitted in the National Assembly. The rupee endured a highly volatile trading session in a range of 1.3 rupees per USD showing an intraday high bid of 185.40 and an intraday low offer of 184.25.
In addition to the political turmoil, the upward rally of commodity prices, decline in foreign exchange reserves, and worsening current account balance have forced the domestic unit to cross Rs. 185 against the greenback.
Meanwhile, the currency lost 1.5 rupees to the Pound Sterling as the day’s closing quote stood at Rs. 243.14 per GBP, while the previous session closed at Rs 241.63 per GBP. On the other hand, the rupee’s value strengthened by 26 paisa against Euro which closed at Rs. 203.4 at the interbank today.
The International Monetary Fund (IMF) has stopped the release the next tranche of the bailout programme and said the global financial institution would engage with the new government once it is formed.
The Fund assured Pakistan that it would continue its support to the country “once the new government is formed”
“There is no concept of suspension within the IMF programme,” the Fund said in a brief statement. “Once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement,” the statement is read.
