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Islamabad, November 30
Pakistan’s currency suffered a massive hit on Friday as the dollar rose to an all-time high of Rs 144, a day after the government celebrated its achievements of 100-day in office.
The Pakistani currency shed Rs 10 in inter-bank trading by Friday afternoon after it was traded at Rs134 on Thursday. It opened at a high of Rs 142 in the morning and the local currency further devalued by 2 rupees to Rs 144. “There is panic in the market and buying spree is going on, but it will be addressed,” an official of the State Bank of Pakistan said.
It is believed that the devaluation was linked with the government’s talks with the International Monetary Fund (IMF) to secure a loan.
Recently, cash-strapped Pakistan’s negotiations with the IMF for a bailout package faced difficulties as the international lender sought the complete disclosure of Chinese financial support and hiking of energy prices and levying more taxes. Zaffar Paracha, General Secretary of the Exchange Companies Association of Pakistan, said the devaluation was expected before any agreement with the IMF. “It seems a continuation of the IMF’s condition for a bailout package.”
Minister Faisal Vada said black marketing was the main reason for the massive devolution. “Black market of dollars was on the peak when we took over and it is still on its peak,” he said, adding government steps will help the rupee to regain its value soon. — PTI
Rs up 27p to end at 4-month high
The rupee strengthened further by 27 paise to close at a four-month high of 69.58 against the dollar on Friday, extending gains for a fourth day in a row aided by easing crude prices and firm stock markets. At the interbank forex, the rupee opened at 69.68, and soon gathered pace to touch a high of 69.57.