KARACHI – Setting a new record, US dollar has hit Rs.134 against Pakistani rupee in the open market on Tuesday, a day after the government announced that it was going to the International Monetary Fund (IMF) for a bailout.
According to local media reports, the US dollar gained Rs9.75 against Pakistani rupee. On Monday, the US dollar was being offered at the rate of Rs124.25 in the open market.
However, with a sharp Rs 9.55 rise within a few hours, the rupee devalued considerably against the dollar.
With the devaluation of rupee, the external debt on Pakistan swelled by a staggering Rs 900 billion.
Interestingly, the Karachi Stock Exchange is witnessing a bullish trend as KSE-100 index gained 878 points to reach 38842.79.
Analysts are attributing Pakistani rupee’s persistent weakness to balance of payment crisis and falling foreign exchange reserves.
Some say that the currency is intentionally being weakened in line with the conditions imposed by the IMF for an economic bailout.