June 14, 2019 (MLN): Rupee continued to show extreme levels of volatility in interbank trade after opening weaker against the Dollar and trading at an all-time low.
PKR opened at 153.75/154.25 vs the dollar, appreciated to 152.50/153 before falling further.
It was last quoted at 156/156.50 (12:40 PST) with trades being reported at 156 level.
Since the end of May PKR has depreciated by Rs.8.07 or 5.46 percent.
Commenting on this sharp round of depreciation, renowned economic analyst Mr. Muzammil Aslam told Mettis Link News that, “Extended Eid holidays has complied huge import bill backlog. Rough estimate suggest that over $1 billion was in queue for clearance, while the remittance flows tapered off post Eid. The mis-match between the exports & imports dues coupled with absence of SBP intervention has weakened the Rupee against USD. The adjustment is trade related not due to dollarization.”
Adding on, he said “as we witnessed in May exchange rate moved both sides, we expect similar trend from now on.”
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