According to the Exchange Companies Association of Pakistan (Ecap), the rupee continued to fall rapidly on Friday, trading at Rs266 per dollar at 10:32 a.m., down Rs11.17 or 4.58 percent from the previous day’s close.
The local currency’s value fell Rs24.54 to a record low of Rs255.43 in the interbank market yesterday, the greatest single-day loss in both absolute and percentage terms since the present exchange rate regime was implemented in 1999.
The government loosened an unofficial cap on the USD-PKR exchange rate in order to relaunch the delayed International Monetary Fund (IMF) loan programme, resulting in the rapid devaluation.
Earlier,
The dollar reaches an all-time high in the interbank where it is being traded at Rs255. The rupee plummet further and is lowest so far in inter-bank trade today as it depreciated by more than Rs24.
Earlier, the rupee had depreciated in both the interbank and open markets a day after the Exchange Companies Association of Pakistan (ECAP) removed an unofficial cap on the USD-PKR exchange rate in the open market.
The PKR was traded at Rs255 per dollar in the open market, which is a record low — according to data from the Forex Association of Pakistan. This is equivalent to a depreciation of Rs12 or 4.94pc.
However, the SBP took action and scuttle the move, forcing exchange companies to bring down the initial price of Rs252.5 to Rs243, within an hour of the exchange firm’s implementation of the unprecedented decision.
More to follow………..
