The result was an all-time low against the dollar.
According to the Forex Association of Pakistan (FAP), the greenback rose by Rs 8.8, or 4 percent, to Rs 224 at around 2:30 pm from the previous day's close of Rs 215.20.
Hoover, according to the State Bank of Pakistan (SBP), closed at Rs 221.99, still up 3.1 pitch.
Saad Bin Naseer, director of Matis Global, said the rupee was seeing a depreciation due to "panic buying [of the dollar] by banks in the interbank market".
He said that after by-elections in the province's 20 seats, "financial markets are panicking following fears of a change [of government] in Punjab and at the Centre".
In the by-elections, the PTI won a landslide victory against the ruling coalition led by the Muslim League (N). After the victory, PTI has demanded early elections.
Naseer added that Fitch rating agency's downgrading of Pakistan's outlook from stable to negative added to the panic in the market.
Additionally, he said, the demand for dollars among importers has also increased as the future of funds from the International Monetary Fund (IMF), friendly countries and bilateral sources is a concern.
Khurram Shehzad, chief executive officer of investment firm Alpha Beta Core, also attributed the rupee's sharp decline to Fitch's shortfall and global trends.
"The dollar is strengthening against almost all global currencies in the global market. The Pakistani rupee is strengthening," Syed said.
Also, Pakistan's external accounts are still not settled. The IMF is yet to be onboarded and the flow is yet to be completed. Global rating agencies have put a negative outlook on the economy so this is an additional burden that is coming on the financial markets, especially the foreign exchange market."
Sachizad killed all the stockholders to collect and strategize for arrest after the rupee fell.
Role of Government, Banks
FAP Chairperson Malik Bustan, when asked about the depreciation of the rupee, further blamed the banks.
He alleged that banks were using the country's political situation as an "excuse" and indulging in "speculation" in the currency market.
He said, “The central bank should take note of this and immediately impose restrictions on dollar forward bookings to end the monopoly of the banks as well as the unnecessary increase in the value of the greenback in the market. "
He added that this would end the "panic" in the market.
Exchange Companies Association of Pakistan General Secretary Zafar Paracha, however, disagreed with Naseer and said that there is no demand for dollars in the open and interbank market.
"It seems that it is one of the terms of the IMF that we devalue the rupee," he said, adding that the government would intervene when the rupee fell to 225 to the dollar.
Pracha said that Fitch's report was also further affected by the depreciation of the rupee.
The government and state institutions were under "no effort" and the decline of the rupee was halted.
"Political parties are only concerned with making or saving governments, no one is concerned with the country or nation, all political parties should come together and make a one-point agenda considering the situation. Sri Lanka's situation is before us."
He said the government must take steps to bring about economic stability, including providing facilities to overseas Pakistanis to increase remittances and not providing facilities to elites and parliamentarians.
"Wathruse, yet the late bay," is Verand.
Komal Mansoor, head of research at Tracemark, said: "The rupee has lost its bottom line. It's meaningless."
He said the central bank must intervene to stabilize abnormal movements, "otherwise [it] risks contagion to all other aspects of the economy".
A fall of Rs
After reaching as high as 211.93% on June 22nd, the dollar began a short-term decline and fell as low as 204.56% on July 4th.
However, the strength gained by the rupee following the $2.3 billion Chinese inflows faded within a few weeks, as the dollar ended the rupee's upward momentum and rose to Rs 2.38 in the interbank market on July 5, which That was the first definition of the new financial year.
Since then, the greenback has continued to rise with a slight change in trend on July 15 – the day the IMF announced it had reached a staff-level agreement with the government. However, analysts reversed their gains the next day, citing lower arrivals and import payments.
The dollar touched a record one-day high of Rs 210.95 to Rs 215.20 in the interbank market on Monday.
In the first session, the greenback rose as high as Rs 217 but gradually eased back to the level indicated by the State Bank. However, exchange companies reported that it closed at Rs 216.20.
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