Pakistani rupee at all-time low of 200 against US dollar

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The market is also waiting for the outcome of the meetings held between Prime Minister Shehbaz Sharif and his coalition partners….reports Asian Lite News

The Pakistani rupee touched a critical threshold of 200 in the open market against the US dollar during intraday trading after shedding Rs 2 on Wednesday, Geo News reported.

Meanwhile, in the interbank market, the local currency continues to be on slippery ground, and with a fresh decline of Rs 2.1, it plunged to yet another historic low of Rs 199 against the greenback during intraday trading, despite suspected intervention by the Central bank.

Investors are concerned as there is speculation in the market that the IMF may not agree to resume the loan programme, following the government’s reluctance to implement the prerequisite conditions.

The market is also waiting for the outcome of the meetings held between Prime Minister Shehbaz Sharif and his coalition partners.

Analysts believe the rupee is gradually heading toward 200 in the interbank market in the days to come, if the government doesn’t take immediate action to bring economic and political stability to the country.

The rupee was trading at a new all-time low at Rs199 at 2:46 p.m. against the greenback, compared to Tuesday’s close of Rs 195.74, according to Geo News.

The local currency has maintained its downturn as Pakistan resumes talks with the International Monetary Fund in Doha for the revival of the stalled multibillion-dollar loan programme

Pak-US ties

Pakistan Foreign Minister Bilawal Bhutto Zardari is in New York to hold a series of meetings with different officials of the Joe Biden administration to reset the dented ties between Pakistan and the United States.

Zardari’s visit to the US has already started to show positive vibes as US State Department spokesperson has said that Secretary of State Antony Blinken has assured Pakistan of strong US support for the efforts to rebuild Pakistan’s economy.

“The United States will continue to work bilaterally on ways to grow investment and trade opportunities to build a prosperous and stable Pakistan,” said the US State Department spokesperson.

“The US also welcomes the ongoing International Monetary Fund (IMF) deliberations with Pakistan,” the spokesperson added.

Betterment in Pak-US ties will definitely have a major impact on the IMF Extended Fund Facility (EFF), which Pakistan is desperately working to revive.

Zardari will have a one-on-one meeting with Blinken, which is likely to work as a major step towards a confidence building measure for Pak-US relations.

“We confirm that Secretary Blinken and Foreign Minister Zardari will meet one-on-one and cover a number of bilateral concerns in a follow-up to their May 6 telephonic conversation,” the spokesperson said.

It is pertinent to mention that US’ support for Pakistan comes at a time when former premier Imran Khan is staging massive public gatherings, claiming that he was ousted from power through a US-led ‘conspiracy’ for a regime change, implemented through his opposition political parties, which brought in the no-confidence motion against him in the Pakistani Parliament.

It is also believed that US’ public support to Pakistan will certainly boost Islamabad’s efforts to revive the IMF programme and could also show positive signs in the bullish market trends in the country as well. (with inputs from Hamza Ameer)

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