The Pakistani rupee breached the critical 200-point barrier against the US dollar during open market trading on Wednesday, with a loss of approximately Rs2, according to Geo News.
Meanwhile, the local currency remains volatile in the interbank market, falling by Rs2.1 to a new historic low of Rs197.25 versus the US dollar during intraday trade, despite apparent central bank assistance.
According to the Forex Association of Pakistan, the rupee was trading at a new all-time low of Rs197.25 per dollar at 10:23 a.m., down from Rs195.74 at the closing on Tuesday.
The local currency has continued to fall as Pakistan starts discussions with the International Monetary Fund (IMF) in Doha today to restart the delayed multibillion-dollar loan package.
Investors are apprehensive because market speculation suggests that the IMF may decline to renew the loan programme due to the government’s unwillingness to implement the necessary requirements.
The market is also anticipating the result of the meeting between Prime Minister Shehbaz Sharif and his coalition partners.
Analysts anticipate the rupee would steadily rise toward 200 in the interbank market in the next days if the government does not take prompt steps to restore economic and political stability to the country.