The dollar continued high flight against Pakistan rupee on Thursday and went past 207 in interbank trade.
The greenback recorded an increase of Rs1.29 compared to yesterday’s rate, hitting 207.75 to a dollar, forex dealers said.
According to the State Bank of Pakistan (SBP), on Wednesday the local currency shed Rs1.3 (or 0.63%) against the greenback to close at Rs206.46.
The day before, the Pakistani rupee closed at Rs205.16.
Traders said the rupee has been losing ground due to the balance of payment crisis and falling foreign exchange reserves. The International Monetary Fund’s remarks on the measures announced in the budget added new pressure on the Pakistan currency.
The IMF has asked Pakistan to take “additional measures” to strengthen the budget and bring it in line with the key objectives of the fund programme.
Arif Habib Limited head of Research Tahir Abbas recalled that the finance minister, in the post-budget press conference on Saturday, said 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.
The analyst said: “Uncertainty in the market has begun since then.” He further identified quarter-end import payment pressure as another key factor behind this decline.
Abbas predicted that the local currency will stay volatile during June, the last month of the outgoing fiscal year 2021-22.