ISLAMABAD: The US Dollar starts from where it left off yesterday. At the closing time, the State Bank reported the interbank exchange rate of dollars to be at Rs. 262.6. The exchange rate also touched the 264 rupee mark in the intraday trading. The closing rate marks a 2.7% depreciation in the value of rupee. In the open market, the dollar was quoted at as much as 269, however, the availability was scarce as before.
In a historic session, on Thursday, the rupee lost its value by Rs. 24, in a single day. This was reported to be the highest level of depreciation within a single day, both in real and absolute terms in the last two decades. Collectively, the value of the rupee has now dropped by more than 12% in the last two days.
Experts believe that this was a much needed move and will help export proceeds and remittances back to formal channels. Despite massive depreciation, the market expects further devaluation, resulting in little to no selling of dollars in the market. A liquidity crisis is also owed to the forex reserves of Pakistan that were recorded at their lowest ever in the last 8 years, at $3.67 billion on Thursday.
The dollar index also dropped by 0.28% this week, showing the weakening of the greenbacks against 6 major currencies of the world. However, this development, fails to provide any respite against rupee which was fresh off the peg itself. Pakistan is said to have devalued its currency in line with the IMF program, a delegation of which, is expected to visit Pakistan between 31st January and 7th February.