Dollar down over Rs24.11 in interbank and more than Rs12 in open market.
Rupee takes a hammering, falls to historic low of 255 against dollar in interbank. Following the removal of an unofficial cap on the dollar exchange rate, the rupee took a massive hit against the greenback in the interbank and open markets on Thursday.
The rupee nosedived in the interbank market during intraday trade today as it depreciated by more than Rs24 — lowest since July 2022.
For the last few months, the local currency was maintaining its position in the interbank market and was not depreciating as analysts expected, leaving many to believe that the government was managing the exchange rate.
A day earlier, State Bank of Pakistan data showed that the dollar closed at Rs230.89.
However, the greenback was being traded at Rs255 in the interbank market during intraday trade today.
The change in the interbank rate was Rs24.11.
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This is the lowest level the rupee has fallen against the dollar since July 28, 2022 when it touched Rs239.94 in the interbank market.
On the other hand, ECAP data showed that the greenback in the open market during intraday trade is being sold at 255 after depreciating by Rs12.
PTI blasts Dar
Meanwhile, Pakistan Tehreek-e-Insaf (PTI) leader Asad Umar slammed Finance Minister Ishaq Dar over his “false ego” which, according to him, dealt a massive blow to the national economy.
“Those, who were claiming to bring down the dollar below 200, they have pushed it above 240,” he said.
“Loss of billions of dollars in remittances and exports, thousands of businesses destroyed, and millions of people unemployed due to the false ego. Who will take responsibility for this disaster?”
SBP ‘adjusting’ exchange rate
Commenting on the developments in financial markets, capital market expert Muhammad Saad Ali said, “the SBP is seemingly adjusting the exchange rate to the market rate – closer to open market to address the widening difference between the official and open market rate and to curb the flow of dollars through the informal market.”
He added that this is an important step to ensure the resumption of the International Monetary Fund’s (IMF) loan programme, which has pushed Pakistan for a market-determined exchange rate.
‘Right move’
Meanwhile, Finance Ministry’s former adviser Dr Khaqan Hassan Najeeb said that it was the “right move” to let the market forces adjust the rupee’s value as the country was facing a “severe dollar liquidity crunch, scarce reserves, as well as Pakistan’s need for moving ahead with the IMF”.
“Pakistan is in a market-determined exchange rate regime. In this regime trade deficit, supply and demand factors, fundamentals of the economy make a lot of impact on currency changes,” the economist told a private news channel.
Najeeb further said that the closing of the gap between market rates and interbank will force “remittances to move to formal channels as well as exporters to offload their receipts”.
“This may help ease the supply of dollars in the interbank,” explained the economist.
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