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The rupee fell sharply against the dollar in interbank trade on Tuesday morning to hit an all-time low of Rs203, with analysts attributing the local currency's decline primarily to oil-related payments and uncertainty surrounding the resumption of the International Monetary Fund's loan facility.
According to the Forex Association of Pakistan, the greenback gained Rs2.40 against the previous day's close of Rs200.40 to rise to Rs203 around 11:30am. (The FAP's closing rate of the previous session is slightly higher than the official rate of Rs200.06 released by the State Bank of Pakistan).
In the open market, the dollar was trading at Rs204 around 12:15pm.
Saad Bin Naseer, director of Mettis Global — a web-based financial data and analytics portal, explained this yet "another dip" in the rupee's value after it weakened against the dollar by more than Rs2 on Monday as a consequence of the currency market being roiled by "decline in [foreign exchange] reserves and oil-related payments".
Moreover, he said, the rupee was also under pressure in view of the upcoming Financial Action Task Force meeting next week.
"All of these factors combined with the uncertainty surrounding the resumption of the International Monetary Fund programme and China’s refinancing of $2.3bn have pushed the rupee to a new low," Naseer told Dawn.com.
@muhammadhafeezmalik
According to the Forex Association of Pakistan, the greenback gained Rs2.40 against the previous day's close of Rs200.40 to rise to Rs203 around 11:30am. (The FAP's closing rate of the previous session is slightly higher than the official rate of Rs200.06 released by the State Bank of Pakistan).
In the open market, the dollar was trading at Rs204 around 12:15pm.
Saad Bin Naseer, director of Mettis Global — a web-based financial data and analytics portal, explained this yet "another dip" in the rupee's value after it weakened against the dollar by more than Rs2 on Monday as a consequence of the currency market being roiled by "decline in [foreign exchange] reserves and oil-related payments".
Moreover, he said, the rupee was also under pressure in view of the upcoming Financial Action Task Force meeting next week.
"All of these factors combined with the uncertainty surrounding the resumption of the International Monetary Fund programme and China’s refinancing of $2.3bn have pushed the rupee to a new low," Naseer told Dawn.com.
Rupee hits all-time low as dollar rises to Rs203 due to oil payments, IMF uncertainty
Analyst says foreign exchange reserves also keeping rupee under pressure.
www.dawn.com
@muhammadhafeezmalik
