The US dollar continues to make new records against the Pakistani rupee, reaching a new all-time high of Rs. 164.50 in the interbank market on Thursday.
The US dollar rose by Rs. 2.34 in the interbank market to reach Rs. 164.50.
On Wednesday, the rupee hit an intra-day low at Rs. 164.50. The rupee weakened 3.3%, or Rs. 5.18, in a single day and closed at an all-time low of Rs162.16 to the US dollar in the inter-bank market compared to Tuesday’s close of Rs. 156.98.
Within just two days, the devaluation of the Pakistani Rupee has been recorded at Rs. 7.02. The rupee has so far lost 9.62%, or Rs. 14.24, in June as of Wednesday’s closing.
According to Currency dealers, Pakistan is scheduled to make most of the external debt repayment and interest payments by the end of June. Another reason for the decline is that multinational companies are taking profits out of the country as the book closing date is approaching, which is June 30th. They also added that the rumors about a higher future value of the dollar, are responsible for the current situation.
Due to the ongoing depreciation of the rupee, gold has also reached a new all-time high at Rs. 81,000 per tola (11.66 grams) on Wednesday.
IMF Executive Board Scheduled to Meet on July 3.
Moreover, the International Monetary Fund’s Executive Board is scheduled to meet on July 3 with consideration of Pakistan”s request for $6 billion thirty-nine month Extended Fund Facility (EFF) on the agenda. The IMF Executive Board calendar updated on its website shows that its meeting has been scheduled for July 3, and the agenda includes the “three-year extended fund facility.”
After the approval of the fund from IMF and other international financial institutions, it will provide financial assistance to Pakistan resulting in high inflows of the Dollars.
The market speculation, that the rupee would weaken to Rs. 160-165 against the US dollar by the time Pakistan formally enters the IMF loan program, came true on Wednesday.
According to the data, State bank’s foreign exchange reserves, as of May 3, stood at $8.984 billion, equivalent to less than three months of import payments.
This is a developing story and will be updated throughout the day as market status changes.