Karachi – The US dollar gained Rs5.60 against Pakistani rupee in the open market on Thursday following strong speculations that the local currency will depreciate further after the signing of a bailout agreement with the International Monetary Fund (IMF).
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.
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.
The devaluation is observed a few days after the 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.
On Wednesday, the rupee plunged to record low Rs146.25 all-time against the US dollar.
It was being traded at Rs146.25, according to the rates released by the Exchange Companies Association of Pakistan.
On Tuesday, the rupee closed at Rs144 against the greenback, 0.20 percent weaker from the previous closing of Rs143.70.
Besides, the Pakistan Stock Exchange (PSX) benchmark KSE 100-share Index has dropped more than 600 points and plunged even below 34,000 points on Thursday.
Most of the currency dealers and experts have already expressed their disappointment over the undisclosed conditions agreed between the IMF authorities and the government.