Rumour mongering at work: US dollar ditches rupee in open market

KARACHI: Nov 17, 2022; In a major jolt to the rupee, US dollar soured by Rs 1.75 in open market in mid-day trade on Thursday
With the latest increase, US dollar soared to Rs 227.25 in open market against last day’s rate of Rs 225.50. The interbank rate of US currency, however, did not show any fluctuation . US dollar remained pegged to the last rate of Rs 222.30.

Saudi Riyal rate in the currency market stood at Rs 62.38 and Dirham traded at Rs 64 in the domestic market.
Big increase in US currency rate in open market showed volatility of the local currency. This shows how market factor play when there is some negative development relating to Pakistan’s economy.
Despite the best efforts of Finance minister for correction and take Pakistan’s forex reserves to some satisfactory level, rumours mongers are out to create an impression in the market that Pakistan can default on payments due on its loans.

Rumours of Pakistan’s risk of default on payments are linked to Pakistan Tehreek-e-Insaf (PTI) . Its leadership is issuing statements wherein they create impression that Pakistan is on the edge to risk of default on its international obligations. PTI social media is adding fuel to these rumours without acknowledging that their act is hurting Pakistan’s interest rather it can risk very survival of the country.
PTI top leader, Imran Khan, and Shaikh Rashid Ahmed who have nothing to do with the economic math are leading the rally of doubts of default on payments of international obligations.

One wonders what link Shaikh Rashid Ahmed has with the economy of this country . A man who did bizzari politics all along in his life is commenting on the economy and its possible risk of default of Pakistan on international payments

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