US dollar hits double century to breach Rs200-threshold in interbankadmin
With the uncertainty over the revival of the International Monetary Fund (IMF) loan programme amid increasing political pressure on the government to announce snap polls, the Pakistani rupee slumped to a new historic low in the interbank market.
With a fresh decline of Rs1.61, or 0.81%, the local currency closed at Rs200 against the greenback on Thursday, the State Bank of Pakistan (SBP) reported.
The rupee had closed at Rs198.39 yesterday; however, in line with the analysts’ predictions, the currency surpassed the incredible milestone of 200 within the first few hours of trading today.
On the first day of talks with the IMF mission, Pakistan indicated that it was willing to take “tough measures” such as increases in POL products and electricity prices, but only in stages, to restart the stalled $6 billion fund program.
The domestic currency has maintained the trend of making and breaking records for the eighth consecutive working day as it cumulatively lost 7.7% or Rs14.31 in the last ten sessions.
The currency hit a record low of Rs188.66 on May 10. It then plunged to Rs190.02 on May 11, fell over Rs191 on May 12, reached Rs192.52 on May 13, and sank below Rs194 on May 16, down to Rs195.74 on May 17, and closed at Rs198.39 yesterday (May 18).
It is worth mentioning that the country follows a market-based exchange rate where the currency moves are determined by the market forces of demand and supply.
Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 26.95% (or Rs42.46) compared to the previous fiscalyear’s close at Rs157.54.