Rupee hits all-time low of 148.5 against US dollar in inter-bank market

[Reddington]

Rupee hits all-time low of 148.5 against US dollar in inter-bank market

By Salman Siddiqui
Published: May 16, 2019

Increase attributed to official government inflows PHOTO: AFP/FILE

KARACHI: The rupee dropped to an all-time low of 148.50 to the US dollar in the inter-bank market on Thursday.

It weakened by over five per cent, or Rs7.10, from Wednesday close of 141.4 in early hours of trade at the inter-bank.

Currency dealers are selling dollar at Rs148 and buying at Rs145, a Karachi based dealer told The Express Tribune.

The drop in rupee comes a day after Prime Minister Imran Khan constituted a committed to control rupee devaluation after its free fall reaching 147 in the open market.

He had warned current dealers of strict actions if they were found selling dollar above Rs144.

Experts said the drop in rupee was expected, as the government had agreed to leave inter-bank market free from state control under the IMF 39-month loan programme with $6 billion for Pakistan.

The government signed the loan programme on Sunday. IMF had conditioned to let the market forces decide rupee-dollar exchange rate going forward.

There was speculation in the market that the rupee may drop to 165-170 to the US dollar under the current cycle of depreciation.

Earlier, the SBP had let the rupee depreciate by staggering 34 per cent to 141.4 since December 2017.

https://tribune.com.pk/story/1974262/2-rupee-hits-time-low-148-5-us-dollar-inter-bank-market/

 

[Roybot]

This is very bad and very sad.

 

[TopCat]

This is very bad and very sad.

why bad.. rupee should find its place through market force. PK does not have enough reserve to manipulate.

 

[Abdussamad]

Someone should have clued IK in:

The drop in rupee comes a day after Prime Minister Imran Khan constituted a committed to control rupee devaluation after its free fall reaching 147 in the open market.
He had warned current dealers of strict actions if they were found selling dollar above Rs144.

Why is our PM always behind on economic matters?

 

[Lincoln]

why bad.. rupee should find its place through market force. PK does not have enough reserve to manipulate.

You do realize that currency depreciation means our loans also increase.

 

[Möbius Curve]

Rupee hits all-time low of 148.5 against US dollar in inter-bank market

By Salman Siddiqui
Published: May 16, 2019

Increase attributed to official government inflows PHOTO: AFP/FILE

KARACHI: The rupee dropped to an all-time low of 148.50 to the US dollar in the inter-bank market on Thursday.

It weakened by over five per cent, or Rs7.10, from Wednesday close of 141.4 in early hours of trade at the inter-bank.

Currency dealers are selling dollar at Rs148 and buying at Rs145, a Karachi based dealer told The Express Tribune.

The drop in rupee comes a day after Prime Minister Imran Khan constituted a committed to control rupee devaluation after its free fall reaching 147 in the open market.

He had warned current dealers of strict actions if they were found selling dollar above Rs144.

Experts said the drop in rupee was expected, as the government had agreed to leave inter-bank market free from state control under the IMF 39-month loan programme with $6 billion for Pakistan.

The government signed the loan programme on Sunday. IMF had conditioned to let the market forces decide rupee-dollar exchange rate going forward.

There was speculation in the market that the rupee may drop to 165-170 to the US dollar under the current cycle of depreciation.

Earlier, the SBP had let the rupee depreciate by staggering 34 per cent to 141.4 since December 2017.

https://tribune.com.pk/story/1974262/2-rupee-hits-time-low-148-5-us-dollar-inter-bank-market/

Interestingly, the anticipation about the exchange rate of 1 USD = 200 Pakistani Rupees to the end of December 2019, seems very plausible then. Very catastrophic & devastating for us!
Make no mistake, it's happening and it is escalating!

 

[IceCold]

rupee has to find its natural equilibrium, it will go up due to speculation, anticipation etc but will eventually settle somewhere between 155 to 160. I dont see it going to 200.

 

[maithil]

No need to worry...

PM forms body to control rupee devaluation

 

[Mr ambassador]

currency devaluation for agrarian economy is devastating .

Pakistan must not devalue its currency . we dont have healthy industrialization . There are more disadvantages of currency devaluation for us.

 

[Fawadqasim1]

My sources are talking about rs 225 in next 8 to 9 months is it true
@BHarwana

 

[litman]

now IK needs to be changed. very soon people will be on the roads. but we are caught between devil and the deep sea . on one side we have honest but incompetent IK and on the other hand we have crooked and corrupt patwaris and jiyalas. pak has only way to go and that is "down".

My sources are talking about rs 225 in next 8 to 9 months is it true
@BHarwana

phir to dhabardoos ho jay ga pakistan ka.

 

[VCheng]

No need to worry...

PM forms body to control rupee devaluation

The only thing to worry here is the reactive nature of the decision making process, when proreactivity is needed.

My sources are talking about rs 225 in next 8 to 9 months is it true
@BHarwana

This is mere speculation at this point in time. Let us wait and see how independent the State Bank's policies are in managing the exchange rate under the IMF bailout first.

now IK needs to be changed. very soon people will be on the roads. but we are caught between devil and the deep sea . on one side we have honest but incompetent IK and on the other hand we have crooked and corrupt patwaris and jiyalas. pak has only way to go and that is "down".

No. PMIK needs to be given his full term in office.

 

[litman]

No. PMIK needs to be given his full term in office.

by that time 1 dollar will be equal to 1000 rs.

 

[VCheng]

by that time 1 dollar will be equal to 1000 rs.

It might improve to 100, who knows?

 

[Fawadqasim1]

now IK needs to be changed. very soon people will be on the roads. but we are caught between devil and the deep sea . on one side we have honest but incompetent IK and on the other hand we have crooked and corrupt patwaris and jiyalas. pak has only way to go and that is "down".

He should resign himself otherwise his reputation will be tarnished permanently he is surrounded by traitors from pmln and ppp who are through and through corrupt people. They are in pti but working for their former lords. They will fail him absolutely.
Their agenda is diametrically opposite to imran khan's. So he needs to get rid of this
Cabinet and this govt immediately.