*ISLAMABAD – US dollar reaches highest level of history against Rupee, mayhit Rs 160 mark upon final agreement of Pakistan government with the IMF incoming weeks and months.*
* The dollar was trading between Rs143.30 and 143.70 in the open market onTuesday. *
The rupee’s value has been dropping against the dollar, as it hitshighest-ever level of Rs142.5 on Saturday.
Last year, the dollar appreciated 27% against the rupee, witnessing two ofits biggest ever single day jumps in the short span of one and a halfmonths. It was one of the most volatile years in terms of exchange rates.
Experts attribute last year’s rise in dollar rates to our depleting foreignexchange reserves, which fell below $7 billion in December. This level wasnot sustainable beyond two months of import payments. The shortage ofdollars had kept rupee under pressure for most of 2018 and resulted in itsdevaluation.
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However, the government was able to secure back to back aid packages fromSaudi Arabia and the UAE during Prime Minister Imran Khan’s visits lastyear. The Saudi government has dispatched the $3 billion it had pledged insupport of our foreign exchange reserves. The UAE, on the other hand, hassent $2 billion and will send another $1 billion soon. China also recentlysent $2.1 billion to support Pakistan’s dollar reserves.
However, the current level of reserves is still not enough to cover threemonth cover for import payments.
