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BUSINESS

Pak Rupee Closes At 206.46 To Dollar : Stalled IMF Programme Is Causing Distress

The rupee was knocked down further by the US Dollar in the inter-bank market as the local currency closed above 206 for the first time.

The rupee settled at 206.46 rupee, a depreciation of Rs1.3 against the greenback, as the currency market anticipated a further spike in inflation, while the dollar added strength internationally.

Yesterday, the currency had settled at the then-record low of Rs205.16.

Globally, the dollar held near its overnight 20-year peak ahead of the outcome of the Federal Reserve policy meeting at which markets are pricing in an outsized 75-basis-point interest rate hike as policymakers try to rein in rampant inflation.

A key U.S. Currency index, which tracks its performance against six peers, was at 105.3 on Wednesday having hit 105.65 a day earlier, its strongest level since December 2002.