KARACHI: The rupee fell sharply against the dollar in interbank trade on Tuesday to hit an all-time low of Rs203 against the greenback.
The Pakistani rupee depreciated further by Rs0.85 against the US dollar in the interbank market primarily to oil-related payments and uncertainty over the resumption of the International Monetary Fund’s loan programme.
According to forex dealers, the US dollar rose by Rs2.93 to 202.99 against the rupee during intraday trading. The US dollar traded between Rs202 and Rs207 in the open market.
This is the third consecutive session that the dollar has continued its ascent against the rupee after snapping the local currency’s five-day winning streak on Friday.
On May 19, the dollar had reached a record high of Rs200 for the first time in the interbank market before it regained control after the government raised fuel prices by a whopping Rs30 per litre.
According to the Forex Association of Pakistan, the greenback gained Rs2.85 against the previous day’s close of Rs200.40 to rise to Rs203.45.
FAP chairman Malik Bostan said that the rupee would remain under pressure till June 30. He said inflation was expected to rise due to the delay in the resumption of the IMF programme. He said this would lead to an increase in the interest rate as a result of which the rupee would weaken.
Bostan also linked the rupee’s decline to the strengthening of the dollar in the international market. This upward drive of the dollar was likely to persist in the coming days, he said.
