The downward trend in the value of the rupee persisted on Wednesday as the currency slipped Rs 0.09 against the US dollar and closed at an all-time low of Rs 171.13 on the interbank market due to speculation about negotiations with the International Monetary Fund (IMF) for the resumption of the $ 6 billion loan program.
In addition, a growing trade deficit coupled with the worsening current account situation has increased pressure on the rupee.
According to the State Bank of Pakistan (SBP), the rupee closed at 171.04 rupees against the greenback on Tuesday.
Talk to L’Express Tribune, Managing Director and CEO of Arif Habib Commodities, Ahsan Mehanti, said the current wave of rupee depreciation was being observed due to the uncertainty surrounding negotiations with the IMF.
Read The rupee crosses 171 against the dollar
“There is a mixture of positive and negative speculation and it is impacting Pakistan’s capital markets including the forex market,” he said. “However, a majority of the public expects the imposition of strict tax measures, as a result, general sentiment has weakened.”
The upward trend in commodity prices in the international market was also putting pressure on the rupee, he said.
Posted in The Express Tribune, October 14e, 2021.