The US dollar has touched a new hike against Pakistan's rupees soaring to Rs175 in intraday trade on Tuesday.
According to a report on Mettis Global, a web-based financial data and analytics portal, the rupee has fallen to a new low of Rs175 against the US dollar at 12:23pm in comparison with the previous session in which the domestic currency had closed the trade at 174.43.
Quoting Asad Rizvi, the former Treasury Head at Chase Manhattan, the report said, “Market needs a firmer direction. Traders are nervous and unsure about the next move, which is causing the high level of stress.”
As per the report the rupee weakened by 37 paisa in the intraday trade, backed by higher demand for the American currency that shattered the traders' sentiments.
In the report, Rizvi said there was no stopping to rupees' one-sided move as the players were unsure about the size of the next hike. Rebalancing of portfolio and mitigating financial losses is tough, he added.
So far the Ministry of Finance is silent about the outcome of the negotiations with the International Monetary Fund (IMF) for the revival of its $6 billion Extended Fund Facility.
The government is yet to announce outcome of the talks between the country and IMF that began on October 4 and were scheduled to conclude by October 15. However, the negotiations prolonged until October 23.