US dollar hits all-time high of Rs142 in interbank market

Posted in : Local News

(added 15 days ago)
The US dollar hit an all-time high of Rs142 in the interbank market on Friday. The greenback gained by Rs8 (a five percent increase) to touch the new high in the interbank market. The dollar stood at Rs 134 when the market closed on Thursday. The rise in dollar comes owing to the widening current account deficit and International Monetary Fund's (IMF) suggestion to the government to realign the rupee with market fundamentals to access funds. Further, the State Bank of Pakistan is set to announce its monetary policy today and the market expects an increase in the interest rate which could be reflecting on the dollar rate. The current policy rate is 8.5%.  The latest devaluation of the rupee has taken the total debt owed by Pakistan to Rs760 billion. The rupee has depreciated by a massive 36% against the dollar over the past 12 months.
 
US dollar hits all-time high of Rs142 in interbank market
 
Further rupee devaluation in sight
The rupee could slump to as low as Rs150 against the US dollar in the coming weeks, Muhammad Sohail, an economic expert, told Geo Pakistan. “There are slim chances of the dollar reducing by any significant amount. It is expected to hover between Rs140 and Rs150 in the coming weeks because the International Monetary Fund has signalled further devaluation in the rupee as one of its bailout conditions,” the analyst noted. Pakistan is an import-oriented economy and hence, the effects of the devaluation will hit the public hard, he explained. “Inflation will increase, and so will gas and petrol prices. Transport fares will also increase as a result. If the government provides some relief to the public by slashing taxes, that may help the common man.” Sohail pointed out that the country is in need of stability, and the IMF loans may inject some confidence in the business community. Farhan Bukhari, an economic analyst, said one of the reasons behind the currency drop is the government’s lack of focus on any one area. “The government’s focus is spread out too wide. They are working on 34 initiatives. [Instead], they should place [greater] focus on economy,” he said.
 
Blog post Written by Riaz Andy and you can visit the original article at https://www.geo.tv/
Tags : US, Dollar, Hits, Time, High, Rs142, Inter, Bank, Market, Pakistan, Rupees, Policy, Devaluation, Fund, Country, Government, Business, Community, Reason, International, Petrol, Gas, Prices

Related Posts

» Dollar falls by Rs5.86 as China lends $2b to Pakistan

» Huawei Launching an Enchanting Smart Phone Which Will Storm across the Local Smart Market

» A transformer collapses due to the excessive weight of wooden planks at the Mauripur Sunday Market

» Pakistani rupee Sinks to Record Low Against Dollar

» Wateen to sponsor Digital Marketing Conference

» Pakistan is big market for Google Inc

» Markets to be closed at 8:30 pm in Sindh

» Android Market is now Google Play Store

(added 15 days ago) / 119 views

Comments (0)

Search this blog..

Top Stories of the week

Existing Users Login
User ID  
Password  
 
 
Join Now / Forgot Password

also you can..
Login with Facebook