Rupee vs. dollar makes record low at 87.39

LAHORE: The rupee fell to a fresh record low Monday on negative sentiment about the country’s economic outlook, as well as the deteriorating security situation in Pakistan’s financial hub Karachi.

The rupee in the inter-bank market closed at 87.39 to the dollar its weakest ever closing-down from the previous record low of 86.95 on Saturday.

Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments.

“The rupee was traded as high as 87.39 against the dollar,” said a dealer at a local bank.

Stalled payments from a bailout programme by the International Monetary Fund (IMF) are also negatively impacting the rupee. The IMF has criticized government for its patchy implementation of fiscal reforms, and has held back the sixth tranche of an $11 billion bailout programme since August last year.

Forex dealer said that the dollar in open market has breached the Rs87 mark.

Experts said that it was imperative to increase the country’s industrial production, boost up exports and fine tune the system of expatriates remittances for bringing stability in the value of rupee.

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