Pakistani rupee nosedives Rs19 against dollar amid IMF deal impasse
LAHORE (MNP) – The US dollar spiralled out of control as the Pakistani rupee depreciated Rs18.89 against the greenback on Thursday amid political and economic uncertainty.
The greenback was being traded at Rs285 in the interbank market around 11:30am. The historic plunge in the value of the local currency followed the monetary policy review and delay in the International Monetary Fund (IMF)’s deal.
According to Arif Habib Limited, the appreciation in the interbank market continues after the government curbed imports to manage the depleting foreign exchange reserves amid a high risk of default.
The development comes as the market expects further monetary tightening to control inflation at the State Bank of Pakistan’s emergency Monetary Policy Committee (MPC) meeting is scheduled for later on in the day. The local currency had fallen against the greenback on Wednesday, settling at 266.11 after a depreciation of 1.73 per cent or Rs4.61 in the inter-bank market.
