ISLAMABAD: Political tug of war going on in the country over controlling the affairs of Punjab province pushed the KSE-100 benchmark index below 40,000 points while the US dollar surged above 232 rupees on Monday during intra-day trading.
The KSE-100 index lost 260.50 points during intra-day trading and the PSX fell to 39,816.73 points.
Heavy downpour in Karachi also dampened the trading as the volume of shares trading fell to 20 million till the filing of this news at 2:15pm.
Meanwhile, the US dollar continued its leap forward and gained over three rupees, stretching its value beyond 232 rupees in the inter-bank trading at 2:30pm on Monday. In the open market, the dollar-rupee exchange rate is fluctuating around 234 rupees.
Importantly, the domestic banks are charging more than 240 rupees against dollar for opening Letter of Credit (L/C) for imports, which is further boosting the value of the greenback in the inter-bank and in open markets.
The Forex Association of Pakistan (FAP) said on Monday that the rupee lost Rs3.63 against Friday’s close of Rs228.37 to reach Rs232 around 1:30pm.
Meanwhile, Mettis Global Director Saad Bin Naseer said that the rupee remained under pressure due to “political uncertainty” surrounding the run-off Punjab chief minister election.
