The value of the US dollar against the rupee has reached another all-time high, valuing around Rs. 148 in the interbank market.
The greenback has surged roughly by Rs.6.50 from yesterday’s Rs. 141.5, marking a historical high with perception well established in the forex market that the rupee will plunge further.
The drop in the rupee’s value comes a day after Prime Minister Imran Khan formed a committee to monitor devaluation of the local currency after it reached 147 in the open market. The premier had warned of strict action if anyone is found selling US dollar for over Rs. 144.
According to the experts, the depreciation in rupee was expected, as the government has decided to relinquish control over the inter-bank market under the conditions laid out by the International Monetary Fund (IMF) 39-month loan program worth $6 billion.
The IMF package contains the condition of a free float exchange rate under which the market forces decide the rupee-dollar rate instead of the government.