ISLAMABAD – Last year, the US dollar appreciated by Rs4 or more in one dayat least on five occasions and fell by as much during intra-day trade onlyonce. Overall, the dollar’s rate has appreciated 27% against the rupee,witnessing two of its biggest ever single day jumps in the short span ofone-and-a-half months.
Market analysts say the dollar may go further up in case of a further delayin availing a loan from the International Monetary Fund to increase ourdollar reserves. At the end of 2018, the central bank’s foreign exchangereserves fell by $170 as it held $7.28 billion to finish the year.
This is barely enough to pay for two months of our imports and is thereforenot sustainable. The shortage of dollars will keep the rupee underpressure, experts say.
The Saudi government has already dispatched $2 billion in cash support toIslamabad and likely to transfer another $1 billion this month while UAEhas also pledged $3 billion in aid without specifying the timeline fortransferring the payment.
There were reports of China being willing to provide a similar aid packagesoon.
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These dollars may provide support through June 2019, but the country needsmore than that to avert the balance of payment crisis, experts say.
Prior to the recent increases, some analysts predicted the dollar wouldcross the Rs140 level and a few even said it might touch Rs150 by June 2019
