The US dollar has continued its climb and hit Rs188.66 with an increase of Rs1.13 against Pakistani rupee at the opening of the interbank trading on Tuesday.
At the start of trading, the US dollar inched upwards by 67 paisas with the trend continuing till closing time. Interbank trading of the two currencies saw extraordinary fluctuations as the federal government has not inked any new deal with the IMF. Economic experts called for immediately stabilizing the US dollar bringing rupee-dollar parity value.
According to the State Bank of Pakistan (SBP), the dollar closed at Rs187.53 on Tuesday, and observed an upwards shift of 90 paisas over the last closing. On May 6, the US currency appreciated by 94 paisas to Rs186.63.
Currency dealers say that a delay in the IMF program, deficiency of immediate financial support from allied countries, declining foreign exchange reserves and rolling trade deficit has kept a pressure on the domestic currency.
The new government’s hesitations in removing subsidies on fuel and electricity have inhibited investors’ sentiment. The removal of the subsidies is a precondition set by the IMF for revival of its program.