Business

Dollar surge to 208 as the rupee falls more in interbank

Dollar surge to 208 as the rupee falls more in interbank

The Pakistani rupee has fallen against the US dollar, reaching Rs208 per dollar. At 12:25 p.m. on Thursday, the rupee was trading at Rs208.25 against the US dollar.

At 12:25 p.m., the rupee fell Rs1.79 to a new low of Rs208.25 against the greenback. According to the central bank, the rupee finished at Rs206.46 on Wednesday.

The most recent depreciation occurred after the Federal Reserve System Bank of the United States (Fed) raised its benchmark interest rate by 75 basis points. The US dollar is likely to strengthen against other international currencies, particularly the Pakistani rupee, as a result of the Fed’s increase.

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Furthermore, there are unsubstantiated rumours in the market that certain Pakistani export orders have been cancelled, limiting the supply of US dollars in the local market.

The currency has been under pressure as a result of the uncertainty surrounding the renewal of the IMF loan programme for Pakistan, according to Arif Habib Limited’s head of reserves.

To manage the balance of payments issue, the IMF programme must be revived.

As of last Thursday, Pakistan’s foreign exchange reserves have drained to a crucial level of six-week import cover, totaling $9.2 billion. When the central bank releases its weekly reserve statement on Thursday (today) evening, the reserves may tumble even further.

Furthermore, there are unsubstantiated rumours in the market that certain Pakistani export orders have been cancelled, limiting the supply of US dollars in the local market.

The currency has been under pressure as a result of the uncertainty surrounding the renewal of the IMF loan programme for Pakistan, according to Arif Habib Limited’s head of reserves.

To manage the balance of payments issue, the IMF programme must be revived.

As of last Thursday, Pakistan’s foreign exchange reserves have drained to a crucial level of six-week import cover, totaling $9.2 billion. When the central bank releases its weekly reserve statement on Thursday (today) evening, the reserves may tumble even further.

On Tuesday, the Pakistani rupee collapsed and crossed Rs205 against the US dollar in the interbank market for the first time, as traders’ minds were occupied by conflicting news about the renewal of the IMF loan programme, making the foreign exchange market uneasy.

According to data from the State Bank of Pakistan (SBP), the rupee fell 0.63 percent (or Rs1.30) versus the dollar to Rs205.16, down from Rs203.86 on Monday.

The rupee had already fallen to a new intraday low of Rs205.77 before recovering to a degree before market close.

RELATED: Dollar Price in Pakistan: Dollar surges to Rs206.25

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Sibtain Ali is a Senior Editor Business at Pakistan Lounge and joined in October 2021. Formerly business editor at a renowned International News website

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