Business Desk:
US dollar rate at Rs.205 in Pakistan after uncertainty in deal with the International Monetary Fund (IMF). The rupee fell sharply against the dollar in interbank trade on Tuesday morning to hit an all-time low of Rs.205.
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 around 12:30 am. This situation has sent alarm bells across the country as the prices of everything are likely to rise up.
“All of these factors combined with the uncertainty surrounding the resumption of the International Monetary Fund program and China’s refinancing of $2.3bn have pushed the rupee to a new low,”, Saad Bin Naseer, the Director of Mettis Global told reporters.
Malik Bostan, who heads the FAP, said that the rupee would remain under pressure till June 30, saying that inflation was expected to rise due to the delay in the resumption of the IMF’s $6 billion program with Pakistan and fuel, gas, and electricity price hikes. This, he added, would lead to an increase in the interest rate, as a result of which the rupee would weaken.
