KARACHI: The Pakistani rupee sank by two rupees seventy-seven paisas versus the dollar on Monday, in the interbank market dollar reaching an all-time high of Rs202.83 paisas, amid rising fuel prices and uncertainty over the IMF rescue package.
“The recent dip in the rupee’s value against the dollar is due to investor trepidation. Investors are panicking as a result of Moody’s recent report and rumors about the government’s decision to block foreign currency accounts,” says Fahad Rauf, head of research at Ismail Iqbal Securities.
This is a trading update for today. The dollar is now trading at Rs204 on the open market. According to economic experts, the two currency markets, which include open and interbank, are based on trust. In the interbank market, currency rates are one to two rupees lower to help merchants and investors.
When the IMF program is restarted and money flows into the country from various sources, the economy will improve (other global lenders).
The stock market turmoil comes as Prime Minister Shehbaz Sharif prepares to welcome stakeholders for a “great conversation” on the economy’s charter. According to the economic expert, it is too early to remark on the business conference because it is being organized for future planning purposes.
— SBP (@StateBank_Pak) June 7, 2022
The terrible issue was that worldwide oil prices rose, and the rupee depreciated as a result of the local crisis. The government has collectively passed on the impact of such situations to the population, resulting in severe inflation in the coming months.