KARACHI: The Pakistani rupee plunged past 210 per US dollar on Wednesday in the interbank market as doubt over the continuation of the International Monetary Fund (IMF) programme persists.
The rupee lost 1.04 percent from its previous close of 207.91 to close at 210.10 against the dollar, according to data from the State Bank of Pakistan (SBP).
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After the government decided to lower the price of petroleum products, the market became uneasy about the potential revival of the programme of the international lender of money.
The rupee has fallen precipitously by 33.36 percent (or Rs52.56) since the start of the previous fiscal year (July 1, 2021) in comparison to the close of the prior fiscal year at Rs157.54.
The first is the dollar’s strength relative to other currencies, as shown by DXY, and the second is upcoming payments because factories were closed for Eid holidays.
Tariq added that the influx of remittances was significant prior to Eid ul Adha because Pakistanis living abroad send money to their families in advance of the holiday season.
However, Tariq claimed that following Eid, the remittances stopped.
A daily volatility of 1% or 2% was not out of the ordinary, according to Alpha Beta Core CEO Khurram Schehzad, but he added that the completion of the IMF programme will help to stabilise the currency market.
He said it was “good” that oil prices were falling on the global market because it will eventually lead to less demand for
