KARACHI: Dollar recorded unprecedented rise on Tuesday increasing by 7.5 percent which was the second largest appreciation in last 27 years in one session following the government’s decision to seek new loans from International Monetary Fund (IMF) to support of balance of payment position.
The government had announced to approach IMF for new loans on Monday. The rumors were circulating since last month or so that the IMF will ask the government to depreciate or adjust the value of the domestic currency.
The domestic currency immediately after opening on Tuesday registered a jolt after importers demand hit the market and exporters swayed from the session. The rupee hit the all-time high mark of Rs 136 to dollar but most of the time trade around Rs 134 but at the close the currency finished at Rs 133.64 level.
The slide was around 7.5 percent or 9.39 rupees, which opened the flood gate of price increases in all the domestic commodities which are dependent upon the imports
The slide was the second biggest slide in single session, first was witnessed in 1999 on May 19, when the rupee depicted a slide of 10 percent.
Depreciation to increase the price of all the imported stuff like petroleum products, edible oil, milk powder, electronic items, mobile phones, dry fruits , tea and spices and other products.