7th consecutive day of free-fall in Pak rupee

by IANS |

Karachi, June 20 (IANS) In line with market expectations, the Pakistani rupee (PKR) has plunged further and crossed the 210 threshold against the US dollar for the first time in the interbank market on Monday.

The domestic currency was available at 210.19 PKR against the greenback in the interbank market, Geo News reported.

This is the seventh consecutive working day of free-fall in the rupee, losing approximately 6 PKR, or over 3 per cent, to date.

The central bank has seemed helpless in controlling the speculative fall in the rupee as demand for the greenback continues to soar due to quarter-end payments pressure.

"The currency will continue to fall until Pakistan manages to strike a staff-level agreement with the International Monetary Fund (IMF)," AA Commodities Director Adnan Agar said.

The analyst was of the view that the investors' confidence is completely shattered which can only be strengthened by positive development on the IMF front, reports Geo News.

Agar also mentioned that depleting foreign exchange reserves has triggered panic buying giving speculators a chance to play with the demand and supply of the greenback.

Meanwhile, Exchange Companies Association of Pakistan (ECAP) Chairperson Malik Bostan identified widening trade deficit, political instability, and declining foreign direct investment as major reasons behind the devaluation of the local currency.

"Political stability is key for economic development," he said, adding that former Prime Minister Imran Khan's call for another long march may adversely affect the rupee-dollar parity.

Latest News
'Politics of hate to hide failures': KCR hits out at Centre Mon, Aug 15, 2022, 04:49 PM
Sundar Pichai wishes India on I-Day with Google Doodle Mon, Aug 15, 2022, 03:50 PM
Marcus Stoinis faces flak for accusing Pakistan pacer Mohammad Hasnain of chucking Mon, Aug 15, 2022, 03:41 PM
UP now most preferred investment destination: Yogi Mon, Aug 15, 2022, 03:28 PM
TRS leader's murder triggers tension in T'gana's Khammam Mon, Aug 15, 2022, 03:26 PM
20 lakh jobs for Bihar youth: Nitish's I-Day announcement Mon, Aug 15, 2022, 03:23 PM
Leading cricketers wish countrymen Happy Independence Day Mon, Aug 15, 2022, 01:59 PM
2 AR troopers injured in Nagaland gunfight Mon, Aug 15, 2022, 01:50 PM
Fresh threats to Mukesh Ambani family, Mumbai cops probing Mon, Aug 15, 2022, 01:42 PM
Stoppage-time Harry Kane header earns Tottenham point at Chelsea as both managers red-carded Mon, Aug 15, 2022, 12:01 PM
Cricket Australia launches five-year strategic plan to take sport to next level Mon, Aug 15, 2022, 11:59 AM
Tesla surpasses 3 mn car production mark: Elon Musk Mon, Aug 15, 2022, 11:58 AM
Wait for 5G is over, India's 'Techade' is here: PM Modi Mon, Aug 15, 2022, 11:56 AM
Hyundai ranks 3rd in global vehicle sales in 2022 1st half Mon, Aug 15, 2022, 11:55 AM
UP to increase medicinal farming output Mon, Aug 15, 2022, 11:54 AM