Pak rupee depreciates further


Dollars gains 40-60 paisa vs rupee in a single day

The greenback gained 40 to 50 paisas in a day, trading in the open currency market on Friday and closed at Rs 106.50 for buying and Rs 106.80 for selling.

Market experts said that there was panic in the open currency market after a raid of Federal Investigation Agency (FIA) at a local exchange company in Peshawar.

The dollar had touched Rs 107.20 for buying and Rs 107.50 for selling in Karachi, but with the support of the State Bank of Pakistan (SBP) and other government banks, the dealers brought it under control. However the interbank dollar rates remained stable at Rs 105.52 for buying and Rs 105.57 for selling.

An analyst in Forex Association said that that after the 9th IMF tranche meeting of Pakistani officials with the IMF in Dubai, there was a lot of pressure on the federal government to depreciate the rupee. He said tax collection had also fallen short by Rs 40 billion.

SBP officials were not available for comment.