PKR tumbles by 18.89 as IMF deal standoff sends rupee into tailspin

Karachi: Cash-strapped Pakistan's currency fell to a record low of Rs285 against the US dollar on Thursday, plunging by over Rs18.89 during trade in the interbank market.

The Pakistani rupee fell during the first 2 hours of intraday trade, losing Rs12 to fall as low as Rs278; the rupee further fell by almost 7.2%, dropping as low as Rs285 against the greenback. 

The rupee depreciated Rs16.89 against the US dollar in early trade today, weighed down by strength of the American currency in the overseas market.  

In the open market, the local currency has dived by around 6% to a record low of Rs290 per US dollar, falling by over 9.2% since Monday last week. 

Commenting on the whopping decline, Topline Securities CEO Muhammad Sohail said the delay in International Monetary Fund (IMF) funding is creating uncertainty in the currency market.

According to the Exchange Companies Association of Pakistan (ECAP), the dollar was trading at Rs273 in the interbank market after closing at Rs266.11 a day earlier.

Interbank closing #ExchangeRate for todayhttps://t.co/yixJmUnrgF pic.twitter.com/PWg8EoDAgM

— SBP (@StateBank_Pak) March 1, 2023

As per reports, in the grey market, the dollar was being traded at Rs290 a day earlier.

The tumble comes after the government relaxed its grip on the exchange rate to win much-needed loans from the International Monetary Fund (IMF).