Friday, December 2

Rupee goes down against dollar amid political crisis

KARACHI: Pakistani rupee Wednesday continued downward trend to a record low as it fell to Rs236.02 against US dollar amid political crisis in the country and delay in expected IMF loan payment.

According to a report, the greenback closed at Rs236.02 in the interbank after decline of Rs3.09 as compared to the previous close of Rs232.93. In the open market, the dollar dropped by Rs3.5 and was being traded around Rs238.5. Political uncertainty has dragged the local currency to historic low against the foreign currency.

Moody’s Investors Service and Fitch Ratings said they expect Pakistan to secure the $1.2 billion bailout from the International Monetary Fund (IMF), which may help ease pressure on the country’s currency and forex reserves.

“We assume IMF board approval of Pakistan’s new staff-level agreement” with the lender, said Krisjanis Krustins, a Hong Kong-based director at Fitch told Bloomberg. “This will unlock significant additional financing from the IMF and other multilateral and bilateral sources and may well provide a significant confidence boost to the markets.”