The US Dollar reaches to the new highest level of Rs150 in the open market on Friday Morning as the Pakistani Rupee continues to slide down. This is happening days after a bailout of $6 billion agreement has been signed between Pakistan and International Monetary Fund (IMF).
In the interbank market, the US Dollars rises by Rs2.48 to Rs149 and in the open market the US Dollar rises by Rs150. President Forex Association of Pakistan Malik Bostan told on Wednesday that in the future Pakistani Rupee is further going to depreciate by 15 to 20 percent against the US dollar.
They elaborated that there is no chance of dollar coming down any time soon until the foreign exchange reserve situation improves.
US Dollar Rises and KSE-100 Index Dropped
Whereas, if we talk about the Pakistan Stock Exchange, KSE-100 index dropped by 965 points at a lowest point of 33,005.99 in the day. Investors get panic as an increase in the interest rates and fresh depreciation occurred due to the latest development.
State Bank of Pakistan is going to tighten the monetary policy and most likely to increase the policy rate over 100 base points (bsp) in order to ensure the microeconomic stability and to curb aggregate demand.
The Monetary Policy Committee (MPC) of the State Bank will meet on Monday 20, May 2019 in order to take decisions regarding the policy rate. This meeting of the monetary policy committee will be chaired by Reza Baqir, the newly appointed Governor of SBP.
Pakistani Currency has fluctuated badly in the past years by 20%, making it the poorest performer among the 13 Asian currencies.