King Dollar rules at Rs236.02

American currency bulldozes rupee to reach historic high of Rs240 in open market

By: News Desk
Published: 04:25 PM, 27 Jul, 2022
King Dollar rules at Rs236.02
Caption: Representational image.
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The US dollar once again has proved that it’s the world’s most powerful currency and here in Pakistan it has been rampaging the money market against a spineless rupee.

As the business concluded in intrabank trading on Wednesday, the American currency hauled up another mighty gain of Rs3.09 taking its value to a new historic high of Rs236,02 against the pathetic performance of the Pakistani rupee.

The situation was not different in the open market also where the US dollar bulldozed Pakistani rupee to reach the historic high of Rs240 after gaining four rupees.

Zafar Piracha of Exchange Companies Association has said that the record depreciation in the value of Pakistani rupee will trigger a tsunami of inflation.

He maintained that the government has not been taking any steps to stem the rise of the US dollar.

On Tuesday, the American currency had also gained Rs3.05 against the Pakistani rupee and reached Rs232.93 in the interbank trading.

Miftah sees rupee rebounding in couple of weeks

Finance Minister Miftah Ismail had said the pressure on the rupee will “vanish” in a couple of weeks. Miftah Ismail on Tuesday said the inflows of dollars into Pakistan will soon be higher than the outflow, resulting in a stable exchange rate.

“Nobody is happy with surgery, but sometimes it’s necessary,” he said while defending his policy of import curtailment to reduce the dollar outflow — a measure that may slow down economic growth and reduce tax collection at the import stage.

He repeatedly insisted that the fears of a sovereign default were overblown and that the policymakers knew “all the balls that (they) have in the air” i.e. expected inflows of the foreign currency in the next quarter or so.

Recently, SBP Governor Dr Murtaza Syed in an exclusive Bank podcast said that Pakistan had achieved the very important milestone of the staff-level agreement with the IMF and the loan programme is fully on track.

Also, SBP Deputy Governor Dr Inayat Hussain in an exclusive with SBP Podcast said that since December 21 rupee had depreciated by 18% and 12% of it was owing to strengthening of the US dollar globally. “Domestic factors are also at play. We expect demand supply gap to narrow soon,” he added.

Reporter: Ashraf Khan