Islamabad May 10 2023: Pakistan Rupee slips to lowest level in interbank after falling nearly 5 rupees against the Greenbank on increase in political temperature in the country due to arrest of main opposition party leader Imran khan in multibillion dollar case.
Pakistan Rupee is fall 4.55 or 1.6 percent to trade at 289.0 against the dollar in interbank (PST 14:10). Yesterday, rupee was closed at 284.44 after falling 99 paisa in interbank.
However, the dollar weakened broadly on Wednesday after U.S. President Joe Biden and top lawmakers failed to break a deadlock on the debt ceiling crisis, though currency moves were marginal amid caution ahead of U.S. inflation data later in the day. Against a basket of currencies, the U.S. dollar index <=USD> is trading at 101.64.
The arrest of PTI Chairman Imran Khan on the premises of the Islamabad judicial complex by a contingent of Rangers in connection with a corruption case set off a series of violent protests across the country, including in the high-security zones where PTI supporters and the law enforcers faced off.
Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain, Moody’s Investor Service said two days earlier.
“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” said Grace Lim, a sovereign analyst with the ratings company in Singapore. “However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF program, Pakistan could default given its very weak reserves.” Pakistan is struggling to restart a $6.5 billion bailout program from the Washington-based lender, which has stalled after the government failed to meet some loan conditions.