*ISLAMABAD - The Pakistani rupee faced yet another historic low against the US dollar in the interbank market.*
The dollar surged by Rs9.74 and was traded at Rs134.
On Monday, Prime Minister Imran Khan gave a green signal to his finance team for availing an IMF programme when they meet the representatives of the Washington-based lender in Bali, later this week. The loan will save Pakistan from defaulting on foreign payments. However, it comes with its own set of restrictions.
One of the conditions is a free float exchange rate as opposed to a managed exchange rate. This means the central bank will not intervene in the market, and let the market forces determine the actual rate of the US dollar against the Pakistani rupee. And this is precisely what seems to have happened.
The dollar surged to Rs134, up by 8% from Monday’s rate of Rs124.3. This is because the central bank is not selling dollars in the market or asking other banks to do it, say market sources.