Rupee plunges to new low against the US dollar

Rupee trading for 196 against the US dollar in interbank market

Pakistani rupee continued to fall against the US dollar, surpassing another significant threshold of 196 in the interbank market to reach its weakest level on Tuesday.

Continuing its decline for the eighth consecutive working day, the local currency was being traded at Rs196.22 against the greenback during intraday. It surpassed its previous day’s record low of Rs194.18.

A consistent delay in the receipt of the next tranche of $1 billion loan from the International Monetary Fund (IMF) is adding pressure on the rupee.

The condition is expected to remain ambiguous for the rupee, AA Commodities Director Adnan Agar said while speaking to a local news channel.

“If the government decides to remove subsidies on petroleum products, the rupee will bounce back,” he said, adding that the rupee would maintain itself between 180-185.

However, if the government made the decision to dissolve the assembly and advance towards early polls, the economic situation will deteriorate even further, he added.

Commenting on the IMF negotiations set to begin tomorrow, Agar said that if the government announces early election, the IMF programme will be delayed. If the government made the decision to maintain the subsidy on petroleum products and went against the IMF conditions, the currency will decline even further.

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