KARACHI. July 19, 2022 . Panic has worked in currency market to hit Pak rupee below the belt as local currency lost major value of Rs 5.81 against a US dollar in inter-day trading in first half of the day on Tuesday . With loss of such a major value for the consecutive second day in currency market , the Rupee closed at Rs 222.11 a dollar in the open market at the closing of first half of the trading day on Tuesday .
Loss of Rs 5.81 in just one half of a trading day is the highest loss to the local currency since March 26, 2020.
On Monday, the rupee had lost Rs 4.24 to a dollar taking dollar value to Rs 215. 20.
The currency market is in total panic after win of Pakistan Tehreek-e-Insaf (PTI) in Punjab’s by-elections.
The business community is in the grip of the fear that PTI’s hostile policy towards US and Europe may lead to further financial crisis in Pakistan and under this fear they are shy of investment in the currency and stock market.
The Pak rupee is continuously losing its value causing panic in the currency market . Despite , some good development like announcement of the agreement of Pakistan with the International Monetary Fund (IMF) and inflow of the funds from China , the Rupee is not getting any respite to take some bullish trend in the market .
At the end of today trading , dollar made more gain and subsequently it’s value ended at Rs 224 at closing of the day.
Sustainable Development Policy Institute (SDPI) Executive Director, Dr Abid , while commenting on the economic situation and depreciation of the rupee said political uncertainty. trust deficit between the state and citizen and the govt and the multilateral lenders, panic buying all are contributing to decline of value of rupee.
Bostan Khan, chairman Pakistan Currency Dealers Association of Pakistan said the basic reason of devaluation of the rupee is political uncertainty in the country. He said PTI win has been taken as a fear by the investors and it has resulted in heavy loss to the rupee in the market.
Talking to NEWSMAN , Bostan Khan said there should be a sense of urgency among the political leadership of the country should sit together and sign out a broad based economic agreement to cease downfall of the national economy.