Dubai-based currency traders have been forecasting heavy remittance activity these days as for most of the past month the Pakistani rupee was in the plus 48 range against the UAE dirham and held up. despite the uncertainties created for emerging market currencies by Russia. – Ukrainian conflict.
The Pakistani rupee fell to an all-time low against the US dollar on Tuesday, trading at Rs185.40 on the interbank market during intraday trading, up Rs1.31 from 184.09 on April 1. The local currency broke above the 185 mark for the first time in Pakistan’s history, Geo News said.
The weakness in the value of the Pakistani rupee against the US dollar will automatically affect its exchange rate with the UAE dirham, as the currency of the United Arab Emirates is pegged to the dollar. In recent days, the Pakistani currency has come under further pressure from the political situation which led to the no-confidence motion against the government.
It has fallen nearly Rs7 against the greenback over the past month. The Pakistani Rupee maintained its slide mainly because the US Dollar strengthened against other major global currencies over the past few days. But the recent drop came due to the uncertain political situation and stalled IMF program as mentioned above.
Pakistan-Kuwait Investment Company Research Director Samiullah Tariq said: “The Pakistani rupee is depreciating due to uncertainty regarding the continuity of the IMF program, which depends on the formation of the interim government.”
On Monday, the IMF assured that it would continue to support the “new government formed” and that it would engage in political talks with them to inquire about their intentions regarding the loan. Meanwhile, other forex brokers said the rupiah is likely to remain under pressure in the current week due to the political clash in the country.
According to the Forex Association of Pakistan (FAP), the buying and selling rates for the dollar in the open market were recorded at Rs184.5 and Rs185.7 respectively.
– with the contributions of the Agencies