Rupee plunges to all time low of Rs290.18 against the US dollar in the interbank market

Rupee plunges to an all-time low of Rs290.18 against the US dollar in the interbank market on Thursday.

The Pakistani rupee sank sharply by Rs18.74 against the dollar in the interbank market at around noon on Thursday.

The rupee was being traded at 285 against the dollar at around 11:36 am.

On the other hand, the dollar is traded at Rs 292 in the open market.

On Wednesday, the PKR closed at Rs 266.11 per dollar, according to SBP data.

The rupee continued its significant downfall in value on the second consecutive day since the government reinstated the market-based exchange rate on the directive of the International Monetary Fund (IMF).

The currency hit a record low on Thursday morning as importers are reported to be panic buying dollars while exporters have reportedly withheld selling the greenback – waiting for a higher exchange rate.

As per the sources, IMF wants the value of the rupee in the interbank market to match its value in the black currency market.

Traders, who failed to buy dollars from the interbank market due to limited availability, headed to the black market to meet their requirements.

For that reason, the local currency took a quick plunge in the illegal market compared to the appreciation it had witnessed in the interbank market over the past few days.

According to the Exchange Companies Association of Pakistan (ECAP) Secretary General Zafar Paracha, the domestic currency is available at Rs286 per dollar in the black market while it is trading at Rs295 per dollar in Afghanistan.

Owing to the IMF’s condition to truly allow market forces to determine the rupee-dollar exchange rate has resulted in the Pakistani currency nosediving.

The local currency had previously hit its previous record low of Rs276.58 about a month ago on February 3, 2023