Karachi September 5 2022: Pakistan Rupee slide 7 paisa in interbank as the dollar index scaled a fresh two-decade high amid Central Bank efforts to achieve market based exchange rate.
The dollar index climbed to 110.02, boosted by a decline in the euro after Russia’s indefinite closure of its main gas supply pipeline to Europe stoked fears of energy shortages and a hit to growth.
Pakistan rupee depreciates 7 paisa or 0.03% in interbank to trade at 219.05 (PST 10:45).
However, dollar in the open market up by Rupee 5 to trade at 228 (PST 10:45) against previous day closing of 223 due to higher demand from individuals travelling to UAE.
IMF emphasized that more prominence should be given to exchange rate flexibility as means to address the BOP pressures rather than to administrative and exchange measures. However, Ministry of Finance requested more time to eliminate all remaining restrictions when BOP conditions permit by the new end of the program at end-June 2023.
The offshore Chinese yuan tumbled to a two-year low of 6.9378 to the dollar and looks set for further losses as growth sputters.
“With the yuan set to weaken further, other emerging markets will face downward pressure on their currencies,” said Per Hammarlund, the chief emerging markets strategist at Skandinaviska Enskilda Banken. “The impact will be felt the most by nations which compete directly with China on exports.”, reported by Bloomberg.
