The US dollar extended its gains on Friday, crossing Rs. 208 in early morning interbank trade, owing to a delay in a settlement with the International Monetary Fund (IMF) and quickly dwindling foreign exchange reserves, according to trend-watchers.
The greenback increased 80 paisa from yesterday’s close of Rs. 207.85 to Rs. 208.65, according to the Forex Association of Pakistan (FAP).
Since the start of the week, the rupee has been steadily losing momentum, causing concern among investors and frustration among economic stakeholders.
The stalled IMF deal, falling reserves, and a delay in the rollover of funds worth $2.5 billion from China are three major causes of the rupee’s weakness, according to Malik Bostan, chairman of the Forex Trade Association.
He claimed that money sent by Pakistanis living abroad had decreased by $50 million in recent months.
He further speculated that the increasing demand for foreign currency could be attributed to Pakistanis on holiday. “The government should stop people from going abroad for vacations because that increases the demand for foreign currency in the market.”
Bostan went on to say that the rupee was in danger due to rising global oil prices and that efforts should be taken to curb gasoline usage.
He went on to say that setting a fuel limit on gas-guzzling vehicles could help achieve this.
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