ISLAMABAD, Jan 26 (dna): It was a freefall situation for the Pakistani
rupee as it plunged to historic low of Rs255 against the US dollar in
the interbank market on Thursday, narrowing the gap with the dollar rate
in the open market.
The clouds over Pakistan’s currency market are getting darker and darker
with no hope in sight as the rupee suffered 27th consecutive hammering
at the hands of the US dollar in the interbank market. The data provided
by the forex dealers suggested that the greenback shot up to the
historic level of 255 as it appreciated by massive Rs24.11 in interbank
market by Thursday afternoon and was currently being traded at Rs255.
The latest rampant surge in the value of the US dollar has multiplied
Pakistan’s foreign debts by over Rs2,000 billion. The situation was no
different in the open market where the US dollar jumped up by Rs12 and
was exchanging hands at Rs255 by noon. The greenback is being bought at
Rs252.50 and is being sold at Rs255 in the open market. On Wednesday,
the US dollar went up by 0.21 percent, gaining value of 49 paisas and
ended the day at Rs230.89 in the interbank trading.
ECAP Chairman Malik Bostan said that commercial banks were not supplying
dollars to exchange companies despite the State Bank’s directives. “The
cap on the dollar rate has been removed which is why it is appreciating.
It can continue to rise till supply resumes.” He urged the SBP to ensure
commercial banks supplied dollars to the exchange companies.
Foreign exchange companies lifted a price cap on Wednesday, which they
said caused “artificial” distortions and created a black market, where
the US currency was selling at higher rates. As a result, the rupee
depreciated to Rs252.5 in early open-market trade.
