Dealers said rupee was under pressure due to a sharp decline in foreign exchange reserves & panic in market.
KARACHI: The rupee plunged by Rs2.14 against the dollar on Monday, owing to a steep fall in the foreign exchange reserves and the rumours of freezing foreign currency accounts, dealers told media.
The exchange rate ended at Rs200.06 against the greenback from last Friday’s closing of Rs 197.92 in the foreign exchange market.
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The dealers said the rupee was under pressure due to a sharp decline in the foreign exchange reserves and panic in the market, owing to the reports of the government’s action to freeze the foreign currency accounts.
The rupee hit an all-time low of Rs202.01 against the dollar on May 26, 2022. However the same day, the government decided to increase the petroleum prices to pave the way for the resumption of the IMF loan programme.
Following this decision, the rupee made a significant recovery to Rs197.59 on June 2, 2022.