US dollar becomes 161.5 rupees
Rupee hits its lowest as dollar becomes 161.5 in inter bank market
A speculation that had suggested that rupee would settle around Rs 160-165 under the condition set by the International Monetary Fund (IMF) to approve a bailout of $6 billion on July 3 for Pakistan, came true when the rupee value dropped to a new low of 161.5 in comparison to the US dollar in the inter bank market. It devalued by Rs 4.5.
“The rupee came under pressure apparently due to (large) foreign debt repayment before the outgoing fiscal year closes on June 30, 2019,” said Top line Securities CEO Muhammad Sohail.
On Tuesday it had closed on 156.96 against dollar. The country is due to pay large international payments soon which include oil payments.
Last week, the State Bank of Pakistan (SBP) Governor Dr Reza Baqir said, “The recent depreciation in rupee is seasonal”. Whereas on the other hand the country’s foreign reserves stand inadequate at $7.6 billion. The rupee has progressively dropped over 9% or Rs 13.58 since June 3rd.
Baqir claims that this is a seasonal pattern as the companies need dollars to make international payments ahead of the yearly closing of books on June 30.
“The pressure on the rupee would remain an ongoing phenomenon [going forward],” he said.
