ISLAMABAD: The US dollar set a new record by hitting Rs200 in the inter-bank and exceeding 202 in the open market ahead of government-IMF talks in Qatar today for resumption of loan programme.
The way the US dollar consistently edged up to Rs 200 in the inter-bank and beyond it in the open market, it indicates that it can be part of the IMF’s new upfront requirement for the resumption of loan, according to analysts.
Earlier, around 11am, the dollar-rupee exchange rate increased to above Rs197 in the inter-bank and over Rs 198.40 in the open market trading. Today’s gain of dollar in the inter-bank is around 3.75 rupees, the highest in a single day in recent years.
Thus, it is the seventh consecutive day of the unbridled growth of the US dollar in the inter-bank and open market as the new government keeps quiet on this issue although Pakistan and IMF officials are resuming talks today in Qatar for the resumption of loan.
Since the formation of allied government led by PML-N, the US dollar has gained more than 16 rupees value in the inter-bank trading and there is no immediate intervention in sight to stop dollar from dredging the value of Pakistani currency.
Analysts are of the opinion that the government would have to enhance petroleum and electricity prices to pave the way for seventh review of the economy of the country.
After showing short gains when the new government was formed, the capital market has become vulnerable to rumours as the government remained undecided on reversing the subsidy programme of Imran Khan government.
IMF has linked the resumption of talks with reversal of the Khan’s subsidy programme and the allied government’s inability to make a decision on this crucial front has created panic in the capital markets in the country.
As Pakistan and IMF officials are holding an important meeting today in Qatar, hopes are high that the positive outcome of talks would put an end to consistent growth in the value of dollar. Some analysts believe that the dollar-rupee exchange rate would fluctuate around Rs200, even after hitting Rs 205 or above this level, during government-IMF talks
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