Infirm Pakistani rupee fails to steady against US dollar
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The infirm Pakistani rupee which has been bearing the onslaught of the aggressive US dollar for the last several trading sessions has again slumped on Thursday after losing 6 paisa in the interbank trading, reported 24NewsHD TV channel.
The foreign currency dealers said that during the morning trading activity, the Pakistani rupee fared well against the US dollar as the American currency traded at Rs239.25 by 10:25 am, lower by 40 paisa from yesterday’s close. But later towards the afternoon, it slid and the US dollar went up and settled for Rs239.71 at the close.
On Wednesday, the US dollar came closer to skyrocketing to another historic high against the Pakistani rupee as it gained 74 paisa in the interbank trading and concluded at Rs239.65, a few paisa away from hitting a record level against the Pakistani currency.
However, the banking market sources pegged the US dollar at close to Rs240.75. Within two months, the rupee returned to the record devalued position it attained on July 28 while the currency dealers in the banking market said the dollar broke all records as it crossed Rs240.
After the disbursement of IMF $1.16 billion tranche last month, Finance Minister Miftah Ismail said a few days ago that the Pakistani currency would start stabilizing after some time.
On Sept 18, the Saudi Arabi also rolled over a $3 billion debt for one year on the existing tough terms and the International Monetary Fund also announced support for Pakistan’s flood-relief efforts but without giving any additional loan.
IMF Resident Representative Esther Perez Ruiz on Sunday issued a brief statement, making clear the global lender’s approach towards Pakistan in the aftermath of the devastating floods.
Perez said that the IMF was deeply saddened by the devastating impact of the floods in Pakistan, offering sympathies to the millions of victims of the floods.
“We will work with others in the international community to support, under the current programme, the authorities’ relief and reconstruction efforts, and especially their ongoing endeavour to assist those affected by the floods while ensuring sustainable policies and macroeconomic stability,” Perez said.
According to the State Bank of Pakistan, country’s current account deficit has fallen to $0.7bn in Aug compared to $1.2bn in July.
Current Account Deficit (CAD) fell to $0.7bn in Aug compared to $1.2bn in Jul. Cumulatively, Jul-Aug FY23 CAD declined by $0.5bn to $1.9bn compared to the same period last year mainly due to increase in exports by $0.5bn & contraction in imports by $0.2bn. https://t.co/q3LNv3HgLs pic.twitter.com/lpPFFNTf06— SBP (@StateBank_Pak) September 21, 2022
But despite all these positive vibes, the rupee still remains under pressure mainly due to speculative trading by commercial banks owing to a differential existing between the interbank and open market exchange rates, dollars’ smuggling to neighbouring Afghanistan and Iran; and devastation caused by recent floods.
Reporter Ashraf Khan