The Dollar continues to rise amid Political Uncertainty. The dollar had closed at Rs210.95 last week. After reaching a peak of Rs211.93 on June 22, the dollar started declining for a brief period and fell to a low of Rs204.56 on July 4.
The dollar was trading at a record Rs216 against the local currency at 3:12 pm, up Rs5, or 2.4 percent, from Friday’s close.
Naseer said that the results of the by-polls had raised concerns about the future of the coalition government in the center and thus, created political uncertainty. “The rupee is under pressure as the market is uncertain about the new setup and the decisions it will take to stabilize the economy, especially the fate of bilateral inflows currently being negotiated by the current finance minister.”
The day the IMF announced it had reached a staff-level agreement with the government. However, the rupee reversed its gains the very next day with analysts attributing it to low inflows and import payments.
