Karachi: Rupee hit new record low amid ongoing political uncertainty and Islamabad’s inability to revive crucial International Monetary Fund (IMF) programme. As per State Bank of Pakistan (SBP), rupee closed at 287.85, loss of 0.56 paisa or 0.19 percent. Earlier during day the currency had touched 288.25 against greenback. This comes day after rupee hit in inter-bank market after decline of Rs 2.25.

Multiple factors are driving negative trajectory of Pakistani rupee against dollar, Zafar Paracha General Secretary, Exchange Companies Association of Pakistan (ECAP) told.

“Delay in resumption of IMF programme is leading factor. We have not seen any positive development on this front,” he said. “Secondly, the domestic political situation remains volatile as stakeholders remain at loggerheads. Moreover, country’s foreign exchange reserves, exports and remittance continue to decline, denting market sentiment.”

“Meanwhile, Exchange Companies (ECs) are barred from entertaining importers. Government should have given an official window for importers, to meet their funding needs. Internationally, was stuck near two-month lows as weak economic data bolstered views that Federal Reserve is near end of its tightening cycle. Dollar index, which measures currency against six peers, eased to a fresh two-month low of 101.43, after dropping 0.5 percent overnight. It was last at 101.53.

Published in The Daily National Courier, April, 06 2023

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