Dollar rises to Rs204 in interbank trade once again

Government facing challenges as budget fails to impress public

Picture source - Reuters

After being steady for a while, the US dollar has again risen to the highest level of Rs 204 against the Pakistani rupee in the interbank market.

According to the Forex Association of Pakistan (FAP), the rupee depreciated sharply by 1.85 to hit an all-time low against the dollar on Monday from last week’s close of Rs202.35.

Meanwhile, in the open market, it was trading at Rs206.

According to Malik Bostan, head of the FAP, the rise in the dollar’s value was due to oil import bill payments.

He said that the rupee will stay under pressure until the deal with the International Monetary Fund (IMF) is finalized.

Meanwhile, the coalition government is having a tough time at the economic front following the presentation of the budget in the federal legislature.

The week began with the rupee’s devaluation and fall of points in stock market. The KSE-100 index of Pakistan Stock Exchange (PSE) has also recorded a 800-point downfall.

Capital market experts have claimed that federal budget was crucial in this regard. The revival of loan from International Monetary Fund (IMF) program would be very important to raise the reserves of country but the IMF could also reject the budget deeming it insufficient.

According to market players, the government must revisit its set targets so that it could convince the Fund for granting the allocated $6 billion amount under the Extended Fund Facility.