Pakistani rupee plunges to all time low at 157 against US dollar

KARACHI: The Pakistani currency on Friday hit an all-time low of Rs.157.10 against the US dollar in interbank market, only a few days after the government unveiled the federal budget for fiscal year 2019-20, before closing at Rs.155.80.
The rupee lost its value by almost 2 percent in a single day on Friday while its weekly losses amounted to 5 percent or Rs.9 against the greenback, dealers said.
Pakistan on Tuesday announced a tax-heavy budget after securing a bailout deal with the International Monetary Fund that requires it to follow a free-floating exchange rate mechanism. The total outlay of the budget is Rs8.2 trillion and the country has set the primary deficit target in line with the IMF demand of 0.6 percent. 
It may be recalled that the IMF and Pakistan reached a “staff level agreement” last month for a $6 billion bailout package following months of negotiations on a deal that aimed to bolster Pakistan’s flagging economy and perilously low foreign exchange reserves.
Dealers said the government should intervene and stop the free fall of the national currency since it was causing panic among people and was not good for the country’s economy.
“During the last three months, we have submitted $150 million in banks to strengthen foreign reserves, but we are unable to comprehend the recent rupee depreciation,” Malik Bostan, president of the Forex Association of Pakistan, told Arab News.
“We have asked the government to stop its ministers and officials from commenting on the currency market because their statements are also fueling speculation,” he added.
The Pakistani rupee has depreciated by almost 50 percent since December 2017 when it was traded at Rs105.
“There is a volatility in the currency market and we think that 155 is the level where the currency should find its equilibrium at least for now,” Samiullah Tariq, director research at Arif Habib Limited, told Arab News, adding: “It should be at 160 against the US dollar in December because of the strong inflows of remittances.”