The flight of the US dollar against the Pakistan rupee appears to have no end in sight, as the currency, which had closed at Rs200.14 on Friday, reached an all-time high of Rs201.40 after an increase of Rs1.26 paisa in the interbank market on Monday.
Experts attribute the rupee’s depreciation to an increase in imports and repayment of foreign loans.
The local currency continues to fall in value against the US dollar, losing another Rs1.26.
Experts say investors are concerned because there is speculation and uncertainty in the market that the IMF will not agree to restart the loan programme due to the government’s unwillingness to implement the prerequisite conditions, such as raising POL prices and ending subsidies.
The State Bank of Pakistan (SBP) reserves, on the other hand, have dropped by $140.5 million to their lowest level of $10.16 billion.
