Soaring US dollar crushes Pakistani rupee to new historic low
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According to forex dealers, during the morning session on Friday, the US currency was appreciated by Rs1.69 reaching the historic high of Rs228.50 in the interbank trading. But towards the close, the US currency was settled for Rs228.37 registering an appreciation of Rs1.56 in its value.
Yesterday, the greenback registered an increase of Rs1.89 and closed at Rs226.81.
The American currency has shown literally no mercy this week and continues thrashing the local currency with multiple shocks as it has gained Rs16.50 in four days of current business week.
Finance Minister Miftah Ismael said that the situation will move towards normality after improvement in the political situation in the next few days as rupee continued its downward spiral unabated against the US dollar and hit the 226 mark on Wednesday.
Addressing a press conference in Islamabad, Miftah Ismail said the dollar has appreciated against other currencies of the world as well.
The minister pointed out that the trade deficit was $48 billion and the current account deficit stood at $17bn during the last fiscal year, which, he stressed, the country cannot afford.
In his presser yesterday, Defence Minister Kh Asif attributed the rupee’s downfall — which has plunged to 227 to the dollar from 204.85 on June 30 — mainly to US currency’s appreciation against other currencies, saying that the dollar had touched a 20-year high.
On the other hand, FAP Chairperson Malik Bostan attributed the rupee’s consistent decline in the last five sessions to “political chaos” and the rise in the dollar’s value in the international market.
He also called upon the State Bank to take strict action against banks involved in “speculation” so the “artificial increase” in the dollar’s price could be stopped.
Reporter Ashraf Khan