On Wednesday, the value of US dollar against rupee rose to all time-high of Rs146.25 in the open market.
While on Monday, the US dollar expanded to Rs2 against the rupee in the open market amid speculations of rupee’s significant devaluation post bailout agreement with the International Monetary Fund (IMF).
The IMF mentioned a “market determined exchange rate” in its programme statement, to which the financial markets have not responded very well. Speculation spread throughout the forex markets, with both small and large investors looking towards the currency.
As a banker said, “the potential for higher rate of dollar is visible in the inter-bank money market.”
Secretary General of Exchange Companies Association of Pakistan Zafar Paracha said on Monday, “fears of further devaluation as a result of the agreement with the IMF have depressed the currency market and the rupee may lose more against the greenback in the coming days.”
A large amount of currency dealers and experts have already expressed their displeasure over the undisclosed conditions set forth by IMF and agreed by the government.