US dollar soars to all-time high, then reduces to Rs144
The US dollar reduced back to Rs 144 after it reached an all-time high at Rs146.25 in the open market, on Wednesday.
The US dollar was being sold in the open market at Rs146.25 after an increase of Rs2.25. This comes a few days after the IMf and Pakistan announced both sides had reached a deal.
The IMF has agreed to give Pakistan a $6 billion loan package. Islamabad has agreed to the deal and the conditions it comes with.
Pakistan’s stocks fell a few days ago as investors were in doubt about the nature of the deal signed between the two sides.
“The investors have taken the IMF conditions as negative, especially with regard to free float of the rupee against the dollar and increasing the interest rate,” Yawar Uz-Zaman, head of Research at Shajar Capital, a brokerage house in Karachi told AFP.
According to some analysts, the hefty sum of $6 billion is also not enough to solve Pakistan’s economic problems.
For a year now, the country’s economy is teetering due to inflation, mounting debts and a weak currency. The primary cause is the country’s current account and balance of payment deficits.
However, according to other analysts, the loan secured from the IMF will allow the government to breathe a bit and looka round for alternatives to solve the financial crisis it faces.