Rupee resumes downward slide against US dollar

• Local currency records a decrease of 0.42% to close at Rs175.04 in the inter-bank market.
• The currency last plunged to an all-time low of Rs175.73 on Nov 12.
• Samiullah Tariq says the local currency has set its range from 173-175.

KARACHI: The Pakistani rupee resumed its downward movement against the greenback after a brief respite two days on the back of positive news flow regarding the International Monetary Fund (IMF) programme.

The local currency recorded a decrease of 0.42% or 74 paisas to close at Rs175.04 in the inter-bank market on Wednesday.

The currency last plunged to an all-time low of Rs175.73 on November 12.

Speaking to Geo.tv, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said the local currency has set its range from 173-175.

The analyst was of the view that the currency appreciated slightly during the last two days because of “sentiments related to the news regarding IMF programme.”

Tariq further added that the rupee-dollar parity depends on the demand and supply of foreign currency in the inter-bank market.

In line with a widening current account deficit, the demand for foreign currency stood higher than supply.

It is pertinent to mention here that the central bank has opted for a flexible exchange rate to let market forces decide the per dollar value of the rupee keeping in view the demand and supply of the foreign currency.