Rupee fall continues, interbank rate Rs242

0

Gold record at Rs162,500

The Pakistani rupee hit a new all-time low of over 242 rupees against the US dollar in the interbank market around noon on Thursday.

The national currency fell 2.64% (or Rs 6.24) to Rs 242.26 around 12:08 p.m. from Wednesday’s close of Rs 236.02. With that, the currency plunged almost 15% ( or Rs31.31) in the last 10 business days.

The latest sharp decline in the rupee is seen after the government announced a high five-month current account deficit of $2.3 billion for the month of June.

This took the full-year CAD to a second all-time high of $17.40 billion in the fiscal year that ended June 30, 2022. The massive CAD increase was funded by reserves exchange rate of the country.

As a result, reserves have shrunk to just six to seven weeks’ import cover at $9.3 billion as of July 15, 2022, according to the central bank’s weekly update last Thursday.

The rupiah continued to slide alongside declining reserves, an analyst said. On the other hand, the resumption of foreign financing is at least four weeks away, as the IMF’s executive board is due to meet and give final approval for the resumption of its lending program to Pakistan at the end of August 2022.

Meanwhile, the price of gold hit an all-time high of 162,500 rupees per tola on Thursday after gaining 10,000 rupees.

After the new rise, the rates of 10 grams of gold jumped to Rs 139,318.

President Karachi Saraf and Jewelers Group Haji Haroon Rashid Chand, in a statement, linked the rise in the local market to a similar move in its international price. He said on Thursday in the world market, the price of the metal jumped $31 an ounce to hit $1,721.

Share.

Comments are closed.