US dollar punches Pakistani rupee hard, again hits record Rs212 mark
June 22, 2022 11:30 AM
After an initial ease of 98 paisas in the early interbank trading on Wednesday, the US dollar again hit back and resumed its upward trajectory gaining 45 paisas, reported 24NewsHD TV channel.
At the outset of trading activity, the dollar suffered a loss of 98 paisas presumably in the backdrop of the news that Pakistan on Tuesday night succeeded in securing the IMF bailout package and would receive $1 billion tranche as soon as the deal was finalized. So, the exchange rate of dollar was dropped to Rs210.50, down 98 paisas from yesterday’s close.
But soon after the initial buffeting, the US currency regained its strength and was appreciated by 45 paisas in the interbank as the trading closed for the day. The greenback concluded the day at Rs211.93. However, earlier in the day it once again hit the record level of Rs212 before settling at Rs211.93.
As the trading ended on Tuesday, the dollar had settled at Rs211.48 after gaining Rs1.52. The situation was even worse in the open market, where the US dollar gained Rs2.50 in its value and hit the Rs216 mark.
After the installation of the new government, the US dollar had so far appreciated by about Rs29. On April 12, 2022, the dollar rate was Rs182.01.
Latest reports said cash-strapped Pakistan has secured the much-needed IMF deal for the revival of Extended Fund Facility (EFF) after agreeing to raise petroleum levy by Rs50/litre, 11% sales tax on POL products from next month and revise tax revenue target from Rs7,005 billion to Rs7,450 billion, reported 24NewsHD TV channel on Wednesday.
The government has agreed to put Rs5 per litre levy on petrol every month till it reaches Rs50/L after 10 months.
According to Mettis Global, Finance Minister Miftah Ismail was hopefull that the IMF would increase the funding amount and bailout duration.
“I am also expecting that the duration of the programme will be extended by a year and the amount of loan will be augmented,” he said. However, he added that the IMF had not yet committed to the changes.
Market sentiments are showing a fluctuation in the events of forthcoming IMF reimbursement and rapidly depleting forex exchange reserves, besides a ballooning import bill which is putting pressure on rupee.
Market experts are of the opinion that the positive breakthrough with the IMF would give temporary respite to the Pakistani rupee.