Rupee nosedives by 18.89 against US dollar

KARACHI: In intraday interbank trade, the rupee lost over Rs18.89 against the US dollar just hours before the central bank’s monetary policy review and amid worries about a still-stalled International Monetary Fund (IMF) deal.

At about 11:36 a.m., the rupee was trading at 285 to the dollar. It ended the previous day at Rs. 266.11. The local currency was currently trading at a rate of Rs292 to $1 in the open market. In an interview, Zafar Parahca, general secretary of ECAP, stated that the market’s primary concern was the delay in the agreement with the IMF; however, the lender’s requirement to peg the exchange rate with that of the grey market, also known as the Peshawar market, had caused uncertainty.

Paracha said, in his view, the current rate was too high and shouldn’t have risen that much.

He added that in the grey market, the greenback was trading at Rs290 a day ago.

Meanwhile, currency market expert Adnan Asghar said the currency had been sliding after delays in a deal between Pakistan and the IMF. He said the country was “nearing a default situation” owing to this delay.

“Uncertain political situation remained another factor behind the rupee’s depreciation,” he added.