The US dollar, which began its upward trend yesterday, has smashed all previous records against the Pakistani rupee.
According to forex dealers, the US dollar, which began the day with a 44-paisa increase, later sprinted to a new record level of Rs203, up by Rs2.94 during intrabank trading on Tuesday.
The situation was no different in the open market, where the US dollar reached a new high of Rs204, up to three rupees.
Yesterday, the Pakistani rupee slumped spinelessly and depreciated by Rs2.25 thus breaching the Rs200 mark once again after getting a buffeting last week. By the end of the trading activity, the dollar rate was closed at Rs200.04 yesterday.
According to forex traders, the Pakistani rupee will remain under pressure until an agreement is reached between the government and the international lender IMF.
The situation in intrabank trading may remain volatile and uncertain until the federal budget is presented.
Former Chase Manhattan treasury head Asad Rizvi told Mettis Global, a web-based financial data and analytics portal, that conditions would remain choppy until the budget and IMF approval for the resumption of Pakistan’s loan facility.
Moreover, he said, “Moody’s on Thursday downgraded Pakistan’s economy’s outlook from stable to negative due to the external financing factor, and the market reaction saw the PKR dipping. Closure of market in the Middle East also added pressure.”
