Rupee shoots past record Rs206 against USD
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index opened in the green on Wednesday — after plummeting by over 1,100 points earlier this week — and gained more than 400 points in intraday trading as investors were buoyed over hopes that Pakistan may exit the FATF’s grey list.According to the PSX website, the index opened at 41,054.68 points and had reached 41,497.92 points by 2:00pm, up 443.24 points or 1.08 per cent.
The market subsequently closed at 41,438.79 points, up 384.11, or 0.94pc.
The market regained momentum after a bloodbath at the PSX on Monday when the KSE100 index plummeted by 1,134.80 points. Analysts linked the bearish activity to the government increasing taxes on the banking sector in the budget, among other factors. The US dollar continued to extend gains on Wednesday as it closed above Rs 206 — a record — amid increasing demand for the currency and a dearth of inflows while talks with the International Monetary Fund (IMF) on the resumption of a $6 billion loan programme remain inconclusive.
The dollar’s upward march against the rupee is now almost a daily occurrence. According to the Forex Association of Pakistan, the greenback gained Rs1.15 from the previous day’s close of Rs.205.25 and reached Rs206.40 by close.