Pak rupee takes deep dive as IMF talks drag

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Traders also held higher imports coupled with rising commodity prices in the international markets responsible for strengthening the dollar against the rupee….reports Asian Lite News

The Pakistan rupee touched a new all-time low of Rs 174.43 against the US dollar in the inter-bank market on Monday in the wake of mounting pressure of import payments as well as looming uncertainty regarding a delay in the International Monetary Fund’s decision regarding resumption of $6 billion Extended Fund Facility (EFF), Geo News reported.

The Pakistan rupee has maintained the downtrend for the past five months. It has lost 14.55 per cent (or Rs 22.16) to date compared to the 22-month high of Rs 152.27 recorded in May.

With a fresh decline of 0.25 per cent, the rupee has depreciated 10.72 per cent (or Rs 16.89) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Pic credits IANS

“Rupee is expected to remain under pressure if IMF-Pakistan talks remained inconclusive,” currency traders forecast, as they believe, the massive depreciation of rupee against dollar was also caused by the panic buying and forward booking by the importers because of fears of a possible failure of IMF-Pakistan talks, the report said.

Traders also held higher imports coupled with rising commodity prices in the international markets responsible for strengthening the dollar against the rupee.

However, apart from the dollar demand by the importers, the panic selling and forward booking of the dollar is also contributing to the rupee depreciation against the greenback, the report added.

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