ISLAMABAD: The US dollar again crossed Rs208 level in inter-bank trading while continuing its upward drive for the second consecutive day against the rupee amid a ‘mysterious silence’ over the resumption of IMF loan programme.
On Thursday (July 7), the US dollar gained another Rs1.26 over the previous day and its value increased to Rs208.20 during intra-day trading in the inter-bank till 1:15pm. In the open market, the greenback is being traded above 209 rupees.
Rumours have gripped the capital markets about the postponement of the IMF programme due to ‘do more’ demands by the IMF, causing blow to the value of rupee.
The currency market analysts are of the opinion that the announcement of a new subsidy scheme by the Punjab chief minister to provide free electricity to 9 million households, which are consuming up to 100 units a month has faded the hope for an early release of the IMF tranche.
The Election Commission of Pakistan, however, has suspended free electricity provision in Punjab due to by-elections in Punjab on MPAs seats, which fell vacant after 25 MPAs of PTI were denotified by the ECP for voting to Hamza Shahbaz in violation of their party’s policy.
Also, the the higher interest rate would further devalue Pakistani rupee in the coming days. The State Bank of Pakistan is scheduled to announce its new monetary policy today for the next two months. Most of the stakeholders expect 100 to 150 basis points hike in the interest rate.
