After a break of almost a week, the US dollar bounced back on Monday and reached the Rs. 151 mark in the interbank market, with the rupee falling by Rs. 2.40 which was weaker than the previous closing quote of Rs. 148.60.
The open market is likely to follow a similar trend. The rupee hit a low of Rs. 151 to the US dollar on Monday in the open market which was up by Rs. 3.
Rupee’s appreciation drive was only till Eid which was likely on the back of Eid remittances. Before the Eid holidays, the greenback was trading at Rs. 147-148 against the Pakistani Rupee on the back of eid remittances and local speculators booking profits on hoarded dollars.
Extreme volatility is being seen in the market which is likely due to unfavorable movements in the exchange rate and selling pressures as the capital market has opened after almost a week.
The stock market saw a bearish-run today as the benchmark, KSE-100 index went down by almost -758 points during the intraday, and is currently trading at 34,823 points as of now and down by -682 points.
The stock market has succumbed to the unfavorable sentiments hovering around tomorrow’s budget announcement, as most market participants expect a budget loaded with huge taxes that will likely affect companies of different sectors which are listed.