Dollar surges to Rs206.25 amid uncertainty over IMF programme

Karachi: The US dollar gained further in the interbank market Wednesday and traded at 206.25 in the opening session amid uncertainty over the revival of IMF’s loan program, Geo News reported.

During intraday trading today, the Pakistani rupee depreciated by over 1.09 paisas. Around 11:30am, the local currency was trading at Rs206.25 per dollar, up from Rs205.16 the previous day.

In the meantime, the Pakistan Stock Exchange (PSX) was in the green as the benchmark KSE-100 index increased by 373.47 points or 0.91% to 41,428.15 points by the close of the morning session.

In response to the other lender’s dissatisfaction with the country’s recently unveiled budget, the rupee plummeted to a fresh record low on Tuesday.

The local unit plunged to an all-time low for a second time this week, hitting 205.16 against the dollar in the interbank market. It weakened by 1.3 rupees or 0.63%. The rupee ended at 203.86 on Monday.

Traders said the rupee has been losing ground due to the balance of payment crisis and falling foreign exchange reserves. But, the IMF comments on the measures announced in the budget added new pressure on the domestic currency.

The IMF has asked Pakistan to take “additional measures” to strengthen the budget and bring it in line with the key objectives of the fund programme.