KARACHI (our reporter):- The US$ continued to surge against the Pakistani Rupee on Thursday and reached at Rs207 in interbank trade on Thursday. 

According to the State Bank of Pakistan (SBP), the PKR recorded a decrease of Rs1.21 (or 0.58%) as it hit Rs207.67. 

On Wednesday, the PKR shed Rs1.3 (or 0.63%) against the US$ to close at Rs206.46.

Traders said the rupee has been losing ground due to the balance of payment crisis and is falling foreign exchange reserves in the country. But, the International Monetary Fund’s remarks on the measures announced in the budget added new pressure on the domestic currency.

The IMF has asked Pakistan to take additional measures to strengthen the budget and bring it in line with the key objectives of the fund programme.

Analyst belives that uncertainity in the market has begun when the finance minister had said on Saturday that the IMF had expressed concerns about the budget numbers, including fuel subsidies, a widening current account deficit, and the need to raise more direct taxes.

He further said that quarter-end import payment pressure has also contribute in weakening the local currency against the US$. The volatility in the local currency will remain by end of the month.

By adminmy

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