Rupee hits another all-time low against US dollar

KARACHI: Pakistani rupee hit a new all-time low of Rs191.77 against the US dollar in intra-day trade in the interbank market on Thursday, ARY News reported.

According to forex dealers, the exchange rate remained under pressure as the US dollar continued its upward spiral against the local currency for fifth consecutive day.

The value of the greenback surged byRs1.75 on Thursday trading and closed at Rs191.77 in the interbank market, hitting an all-time high.

The domestic currency also lost ground in the open market and traded above Rs193.

The dollar has appreciated by Rs5.14 in the interbank market since May 1.

The US dollar on the other day closed at Rs190.02.

Interbank closing #ExchangeRate for todayhttps://t.co/hIGfWVBnAt pic.twitter.com/AmQJ0izGyH

— SBP (@StateBank_Pak) May 11, 2022

According to experts, the surging dollar has shattered the confidence of rupee-based economy and its stakeholders.

The gloomy macros will continue to put pressure on the local unit, they said.

PSX bloodbath continues

Pakistan Stock Exchange (PSX) on Thursday continued its declining trend after the KSE-100 index shed 343 points, a continuous decline in the market for the third day owing to indecision over a deal with International Monetary Fund (IMF).

The KSE-100 index traded at 42, 520 after the decline.

The Pakistan Stock Exchange (PSX) on Wednesday witnessed massive selling pressure as the benchmark KSE-100 index shed more than 1000 points owing to growing uncertainty over talks with International Monetary Fund (IMF) for the release of US$1 billion tranche.

Economic woes

PML-N bigwigs including Prime Minister Shehbaz Shehbaz are in London to meet party supremo Nawaz Sharif over the country’s financial situation and other political matters.

The prime minister, along with his key cabinet members and party leaders, on Wednesday, held detailed discussions with Sharif on the prevailing economic and political situation in the country.

It is worth mentioning here that the coalition government, led by PM Shehbaz Sharif, is facing several economic challenges since coming into power back in April 2022 after Imran Khan was dethroned as Pakistan PM through a no-confidence motion.

The new coalition setup, since then, had approached International Monetary Fund (IMF) and Saudi government for bailout packages. The federal government recently also held talks with UAE economic team in Lahore for “financial support”.

According to sources, talks between Pakistan and the International Monetary Fund (IMF) could resume on 18 May in Qatar.