News
May 27, 2022
Dollar Climbs to Rs202.40 on Thursday after IMF Doha Talks Bear No Fruit
Karachi: The rupee continued to lose ground against the US dollar on Thursday and depreciated by 50 paisa in the interbank market as talks between the government and the International Monetary Fund (IMF) remained inconclusive.
According to the Forex Association of Pakistan (FAP), the dollar was trading at Rs202.40 at around 1:30pm after appreciating against Wednesday's close of Rs201.90.
In the open market, the greenback was trading at Rs203.50 around 1:30pm.
The persistent decline in the rupee's value since May 10 has been largely attributed to the country's rising import bill, widening current account deficit and depleting foreign exchange reserves.
Since the PML-N-led coalition government took over on April 11, when the dollar was valued at Rs182.30, the greenback has risen by Rs20.1, or 11per cent.
FAP secretary general Zafar Paracha blamed the government's inconclusive talks with the IMF for the depreciation of the rupee. He told Dawn.com that investors had been hopeful of a breakthrough.
"But they [the facility] refused to release the funds until the removal of fuel subsidies. This development has increased the pressure on the rupee," he pointed out.
Moreover, Malik Bostan, chairman of the Forex Association of Pakistan, said that the rupee's fall was also because of the falling foreign exchange reserves and over $10 billion of external payments due.
"Loan from international financial institutions can alleviate the pressure on the rupee," Bostan suggested.
Courtesy https://www.dawn.com