After losing Rs2 on Wednesday, the Pakistani rupee reached a key level of 200 versus the US dollar during open market trade.
Meanwhile, despite probable central bank intervention, the local currency remains on shaky ground in the interbank market, having fallen by Rs2.1 to yet another historic low of Rs199 against the greenback during intraday trade.
At 2:46 p.m., the rupee was trading at a new all-time low of Rs199 against the dollar, down from Tuesday’s close of Rs195.74.
As Pakistan starts discussions with the International Monetary Fund (IMF) in Doha today for the resurrection of a stalled multibillion-dollar loan package, the local currency has continued to fall.
Investors are anxious because there is speculation in the market that the IMF may refuse to restart the loan programme due to the government’s unwillingness to meet the required requirements.
The market is also anticipating the outcome of Prime Minister Shehbaz Sharif’s discussions with his coalition partners.
If the government does not take fast steps to bring economic and political stability to the country, analysts predict the rupee would eventually go toward 200 in the interbank market.