Multiple factors including political and economic uncertainty have pushed the Pakistani rupee down further against the US dollar in interbank market on Wednesday. According to the data made available by the forex dealers, the local currency remained under pressure as it lost 21 more paisas in value against the greenback, and was currently being traded at Rs287.50.

On Tuesday, the rupee crashed to a historic low against the US dollar. The rupee closed at 287.29, a loss of Rs2.25 or 0.8%. This is the lowest level for the Pakistani rupee since it hit 285.02 against the greenback in March this year. Earlier in the year, the rupee had suffered a dramatic fall when it went from 230.89 to 255.43 on January 26 as the government loosened what were seen as administrative measures to keep the currency in check.

Experts say the market awaits the resumption of the IMF Extended Fund Facility (EFF) programme, which has remained stalled since last year. Uncertainty pertaining to the IMF programme is causing pressure on the Pakistani rupee. The country’s foreign exchange reserves have also declined, which is another source of concern for investors.

In a key development, Finance Minister Ishaq Dar, accompanied by a high-powered delegation, will visit the US from April 10 to 16 to attend the upcoming annual spring meetings of the IMF and the World Bank. The incumbent government has already said that it has fulfilled all requirements set by the international lender for the release of the $1.1 billion tranche.

Credit : Independent News Pakistan-INP