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Rupee takes historic plunge in inter-bank market

KARACHI, June 14 (WNP): Pakistani currency weakened to a record low at Rs156 to the US dollar at a point of trade in the inter-bank market on Friday.

The currency has freshly lost Rs3.10 from yesterday’s close Rs152.90— a cumulative drop of Rs8.62 in the past six working days since June 3.

“[Apparently] the mounting import payment and foreign debt repayment pressures have led to the rupee’s plunge,” Next Capital Managing Director Muzammil Aslam said.

A long list of import orders— which could not be processed by banks due to the Eid and weekly holidays from June 4 to 9— created higher demand for dollars in the inter-bank market, he said.

Secondly, Pakistan is scheduled to make most of the external debt repayment and interest payment by the end of June.

“These two developments have created massive demand for dollars at a time when the country’s foreign currency reserves are depleting consistently,” he said.

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