Rupee dives even lower as fears over Pakistan’s faltering economy increase
KARACHI (PEN) – Amid the political uncertainty in the country the Pakistani rupee continued its free fall and dropped to a record low.
According to details, the greenback was being traded around Rs236.5 in interbank after appreciating by Rs3.57 compared to previous close of Rs232.93.
Meanwhile in open market, the greenback appreciated by Rs4 and was being traded around Rs239.
Political uncertainty has dragged the local unit to historic low against the foreign currency.
However, 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.”