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Dollar reaches to Rs139 in interbank market

KARACHI: Pakistan rupee further depreciates by Rs5.06 to Rs139.05 against US dollar from Thursday’s closing on Rs133.99 in interbank market.

Earlier in the day the dollar appreciated to Rs142, however, rupee recovered some losses.

Prime Minister Imran Khan addressing a ceremony in Islamabad Friday said the government was taking all out measures to ensure the ease of doing business in the country and attract foreign investors which would help address the issues of current account deficit and rupee-dollar disparity through enhanced inflows of dollars.

He said rupee appreciated as dollar was short in the market, which was required to pay back the previous loans. Dollar would not appreciate further in coming days, he said.

Analysts at Arif Habib Limited said the rupee declined to mounting pressure on foreign exchange reserves (USD 14.6 billion at present, SBP reserves at USD 8.1 billion and import cover at a meager 1.7 months), negative net international reserves at around USD 10 billion. Besides, the infamous Current Account Deficit (at USD 4.8 billion in 4MFY19; -4.6 percent YoY) has persistently stressed the PKR-USD parity.

Additionally, they also cite approaching International Monetary Fund (IMF) for a potential bailout package as a possible reason for depreciation of the Pak Rupee.

To recall, last major movement in a single day was witnessed in October 2018 whereby the Pak Rupee slipped against USD by 7.54 percent DoD to settle at Rs133.64, due to concerns over the deteriorating external account.

The rupee also declined in open market due to higher demand, said Malik Bostan, President, Forex Association of Pakistan.

In the cash ready market buying and selling of dollar recorded at Rs136.70/Rs137.70 from previous day’s close of Rs135.00/Rs135.40.

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