The Pakistani rupee has further depreciated and reached Rs142.7 against the US dollar in the open market. It has been speculated that Pakistan has agreed to further weaken the rupee against the dollar under the International Monetary Fund (IMF) bailout programme.
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Exchange Companies Association of Pakistan (ECAP) Secretary General Zafar Paracha said, “There is speculation the rupee will depreciate to 165-170 against the US dollar in the inter-bank market as per IMF’s conditions.”
The State Bank of Pakistan (SBP) reported that during the day rupee remained constant at 141.39 to the greenback in the inter-bank market.
Malik Bostan, the Pakistan Forex Association President said “market talk suggests Pakistan and the IMF have agreed to let the rupee fall to a certain level. However, there is no official word on the likely development.”
A few days ago Topline Research reported that the rupee will depreciate by 13 to 17% to reach Rs160 to Rs165 to the greenback by December 2019.
This has led people to buy US dollars before it further
Paracha said, “Pilgrims who are about to perform Umrah or going for Haj later seem to be major buyers of the foreign currency these days.”
In the past four days, the rupee has weakened by a total of 1.3 against the dollar in the open market. Since December 2017, the State Bank has allowed the rupee to depreciate by 34% affecting the economy of the country.