Pak rupee slaughtered hours before monetary policy review

Karachi, March 2

The Pakistani rupee plunged by over Rs 18.89 against the US dollar in intraday interbank trade, hours ahead of the central bank's monetary policy review and amid concerns over a still stalled International Monetary Fund (IMF) deal, media reports said.

The rupee was trading at 285 against the dollar at around 11:36 a.m. (local time) after closing at Rs 266.11 a day earlier, Geo News reported.

Meanwhile, in the open market, the local unit was trading at Rs 292 to a dollar.

ECAP general secretary Zafar Parahca said the main concern in the market is the delay in the agreement with IMF. However, the lender's condition to peg the currency rate with that of the grey market - also referred to as the Peshawar market - has triggered uncertainty, Geo News reported.

Paracha said, in his view, the current rate is too high and shouldn't have risen that much.

He added that in the grey market, the greenback was trading at Rs 290 a day ago.

Meanwhile, currency market expert Adnan Asghar said the currency has been sliding after delays in a deal between Pakistan and the IMF. He said the country is "nearing a default situation" owing to this delay, Geo News reported.

"Uncertain political situation remained another factor behind the rupee's depreciation," he added.

Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has slammed the government for 'slaughtering' the rupee.

"Rupee slaughtered - lost over 62 per cent or 110/$ in 11 months of PDM. This has increased public debt alone to Rs 14.3 trillion and historic 75-year high inflation 31.5 per cent," the former Prime Minister said, Geo News reported.

The PTI chief alleged that the country is "paying heavy price of regime change conspiracy where a bunch of criminals" were "foisted upon the nation" by the former army chief (General (retd) Qamar Javed Bajwa).