ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Pakistani rupee falling amidst political tension
Publication Date : 24-06-2014
Dollar crossed the 100 Pakistani rupees barrier in a nervous currency market on Monday amid live television coverage of the arrival of Dr Tahirul Qadri and subsequent events in the day.
Currency dealers in the open market said that the arrival of Dr Qadri and ensuing political tension depressed the market.
Nervous traders turned to money market to cover their future needs. The buying of dollar spiked and ultimately the price went up to cross the red line.
“We sold a dollar for over 100 Pakistani rupees and purchased it for 99.90 Pakistani rupees,” said Anwar Jamal, a currency dealer.
"For the last four months, the dollar-rupee parity stayed stable fluctuating in a narrow band in the open market. It remained under 100 Pakistani rupees.
Currency dealers said the sudden increase in the dollar price was the “Qadri impact” and it might continue if such a situation persists.
However, the exchange rate in the inter-bank market remained unaffected from political chaos developed during the last five days.
Bankers observed that if such political disorder prolongs for a week or more, it may hurt the inter-bank rates, as a possible panic-like situation may emerge.