Rupee drops to one-week low of 200.51 against USD | The Express Tribune

The Pakistani rupee on Monday slumped 1.30% (or Rs2.59) to a one-week low of Rs200.51 against the US dollar at around 1:45pm in the inter-bank market on Monday marking another significant drop for a single day.

The rupee had closed at Rs197.92 against the greenback on Friday, according to the central bank.

“This is a cause of concern,” Taurus Securities Head of Research Mustafa Mustansir said while talking to The Express Tribune.

“The drop is seen following the prices of petroleum products hovering high above $120 per barrel in the global markets, as Pakistan heavily relies on imported energy” he added.

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The analyst said budget uncertainties have mounted pressure on the rupee.”IMF would consider resuming its loan programme after seeing whether Pakistan has implemented prerequisite commitments in the budget,” Mustansir said.

The government is expected to make financial adjustments worth Rs2 trillion in the upcoming budget through cutting expenditures and increasing tax revenues, he added.

Experts said the resumption of the IMF programme is a must to stabilize foreign exchange reserves and avoid worsening the balance of payment crisis.

The reserves have depleted by over $7 billion in the past six-month to a critically low level of a mere six-week import cover at $9.72 billion.