Rupee Keeps Falling Against Dollar
Rupee Keeps Falling Against Dollar: The rupee extended its losses against the dollar on Tuesday, dropping to a fresh all-time low in the open and interbank markets as concerns about depleting foreign currency reserves and high import payments mounted, dealers said.
They said the rupee, which has lost a chunk of its valuation lately gave up more ground against the US dollar owing to a higher greenback demand for import payments.
The rupee traded as low as Rs.122 against the dollar before finally closing at Rs.121.73. It had ended at Rs.121.39 on Thursday.
Some traders quoted the rupee trading at Rs.122.30 during an intra-day session.
The rupee sank further against the dollar in the open market and closed at Rs.123.50 for buying and Rs.124.50 for selling. The rupee had ended at Rs.122.50/123.50 on Thursday.
Traders said there was a shortage of foreign exchange in the kerb market, which is reflective of a continued fall of rupee in the interbank market.
Zafar Paracha, the secretary general at Exchange Companies Association of Pakistan, said there was no supply of the greenback as exporters and ordinary citizens were not willing to sell dollars.
A dealer observed the interbank market remained volatile and did not stabilise even after Eid holidays.
“A higher demand for dollars to cover oil payments before the end of the month shot up the rate of the dollar,” the dealer said.
The dealer added that import payments created dollar shortage in the interbank market.
“Moreover, a loan repayment to the IMF (International Monetary Fund) [also] weighed on the currency,” the dealer said.
Pakistan is set to pay the 7th installment of about $190 million to the IMF against its Extended Fund Facility arrangement this month. The next payment is due on July 22, 2018.
The country successfully completed a $6.7 billion three-year loan program with the IMF in September 2016.
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