Business

Rupee falls to Rs189.5 against dollar in inter-bank

Crosses Rs190 mark in open market

Salman Siddiqui April 07, 2022

PHOTO: FILE

KARACHI:

The Pakistani currency recorded a sharp drop of Rs3.39 on Thursday and plunged to an all-time low of Rs189.51 against the US dollar in intra-day trading in the inter-bank market owing to political turmoil in the country.

The domestic currency had closed at Rs186.13 against the greenback on Wednesday.

Sources said that rupee dropped beyond Rs190 in the open market because only a nominal amount of the foreign currency is available for buying by individuals.

Experts said that uncertain domestic political situation was mounting pressure on the rupee.

Besides, the central bank also refrained from intervening in the market to rescue the sinking rupee. The country's foreign exchange reserves have depleted rapidly over the past six to seven weeks to a two year low of $12 billion.

Analysts stated that pressure mounted on rupee after the International Monetary Fund (IMF) once again placed its $6 billion bailout programme on hold.

Besides, Pakistan’s trade deficit shot up 70% to $35.5 billion in the first nine months of current fiscal year 2022 which added to the depreciation.

COMMENTS (2)

test | 2 years ago | Reply Media also plays a role in keeping the financial uncertainties. For example one day a news say Dollar to hit 190 and it actually got that point . They would have said that Dollar to remain at 182 . But guess they didn t. It s not them who decide its central bank who decides the rate at which a dollar trades. But media just knowingly or unknowingly give a kick a foolish one at some foreign agenda or at the agenda of some elite class people to create financial uncertainties. There should be a rule to control the dollar. As central bank has clear record of how much dollars are at the moment available in Pakistan. Just remember one thing that financial uncertainty is a lot worse than actual problem. So if someone has agenda of bringing the dollar to 190 then have may have succeeded at that point. Too much power to the media which creates financial uncertainty should be a crime.

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