The rupee breached formidable resistance of 99 to the dollar to slump to a record low on Friday, showing vulnerability of a country with limited forex reserves in the wake of the loan repayments to the International Monetary Fund (IMF), dealers said.
In the interbank market, the rupee closed weaker at 99.65 against the dollar as compared to Thursday’s closing of 98.95.
The forex market showed a high scale of volatility as Pakistan paid an installment of $264.9 million to the IMF under the standby arrangement and extended credit facility.
Analysts said the local currency is expected to decline further against the dollar in the coming sessions as the ongoing payments to the IMF is exerting pressure on the foreign exchange reserves of the country.
The forex dealers, however, remains hopeful that the local currency will not head towards 100 as the State Bank of Pakistan (SBP) will intervene in order to bring stability in the market.
In the open market, the rupee was traded at 130 per dollar at the buying counter and 155 at the selling counter, respectively.
