On Thursday, the dollar continued to rise against the Pakistan rupee, surging past Rs207 in interbank trade.
According to forex dealers, the foreign currency gained Rs1.29 against yesterday’s rate, reaching Rs207.75.
According to the State Bank of Pakistan (SBP), the Pakistani rupee fell Rs1.3 (or 0.63 percent) against the US dollar on Wednesday, closing at Rs206.46.
The Pakistani rupee closed the previous day at Rs205.16.
According to traders, the rupee has been losing ground as a result of the balance of payment crisis and falling foreign exchange reserves. However, the International Monetary Fund’s comments on the budgetary measures put additional pressure on the domestic currency.
The IMF has asked Pakistan to take “additional measures” to strengthen the budget and align it with the fund’s key objectives.
Earlier, Tahir Abbas, Head of Research at Arif Habib Limited, told that the finance minister had said in the post-budget press conference on Saturday that the IMF had expressed concerns about the budget numbers, including fuel subsidies, a widening current account deficit, and the need to raise more direct taxes.
“Market uncertainty has begun since then,” the analyst said. He also identified quarter-end import payment pressure as a major contributor to this decline.
Abbas estimated that the local currency would remain volatile in June, the final month of the current fiscal year 2021-22.
