Rupee’s battering versus greenback in interbank, closes at 200.14

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By Commerce Reporter

KARACHI: Domestic currency extended its fall and dropped 0.07 percent versus greenback in interbank market to close at Rs 200.14 as investors expressed concern over pace of its fall and a lack of support from central bank.

According to State Bank of Pakistan (SBP), rupee for first time in history of Pakistan closed at Rs 200 on Thursday. In open market, rupee was sold at 202 against greenback, rates released by Forex Association of Pakistan showed. However, some dealers are selling it at an even higher rate of Rs 203-205 in market.

Economic experts and financial pundits link depreciation of currency to bailout talks with International Monetary Fund which are underway in Doha, apart from intensifying balance of payment crisis, increasing political uncertainty and eroding investor confidence in country’s economy.

Since beginning of this fiscal year (July 1, 2021) to date, rupee has collectively dropped by a massive 27.04 percent (or Rs 42.6) compared to previous fiscal year’s close at Rs 157.54.