The value of the US dollar against the rupee touched another all-time high for the second consecutive day, reaching approximately Rs147 after gaining Rs5.60 against the rupee in the open market with speculation rife in the forex market that the rupee may slide further.
Experts believe that the sudden devaluation of local currency against the US dollar and the greenback hitting an all-time high of Rs147 is interlinked with the government’s commitments to the IMF.
According to currency dealers, dollar was trading at Rs147 in the open market, whereas in the interbank market it remained stable around Rs147.
With this spike in the rate of US dollar, Pakistan’s foreign debt has increased by Rs588 billion with further rise in inflation being anticipated by analysts.
An exchange dealer explained another factor ‘the demand from Pakistanis planning to spend their vacations abroad after Eid holidays and during school vacations.’ Moreover, some buying has also been witnessed from travelers flying out for performing Umrah.
A few days ago, Prime Minister’s Adviser on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Sheikh announced to have finalised a three-year bailout with the International Monetary Fund (IMF) for $6 billion.