The US dollar’s depreciation against the rupee continued on Tuesday, with the interbank market hitting an all-time high of Rs212 at 1:15pm in intra-day trade due to a delay in the International Monetary Fund’s (IMF) loan programme.
Despite Finance Minister Miftah Ismail’s assurance that the IMF programme will be restarted within the next two days, the Pakistani rupee remained highly volatile and resumed its losing run versus the US dollar today.
The dollar is currently trading at Rs212, up over Rs2 from Monday’s record high of Rs209.96, according to the Tresmark.
Apart from the delay in the renewal of the IMF programme, the rupee continues its downward trajectory, which has been ascribed to quarter-end payments due to the country’s mounting import bill, expanding current account deficit, and dwindling foreign exchange reserves.
The rupee’s recent drop in value against the greenback came after traders resorted to panic purchasing in response to concerns that some commercial banks were running out of foreign currency.
Business leaders have encouraged the State Bank of Pakistan (SBP) to play its part in halting the rupee’s depreciation. The central bank, on the other hand, appears powerless to exert control.
