Rupee plunges to historic low of Rs255.43 in interbank market

KARACHI: The rupee tumbled to an all-time low of Rs255.43 against the dollar on Thursday after recording a historic single day fall of Rs24.54 at the closing of the interbank foreign exchange market, dealers said.

The local currency depreciated against the greenback after the government agreed to the conditions of the International Monetary Fund (IMF) for the revival of the loan programme under the Extended Fund Facility of the International Monetary Fund (IMF).

The IMF has asked the authorities to allow the exchange rate on the basis of the free market.

Previously, the rupee fell to the historic low of Rs239.94 in the interbank market on July 28, 2022.

Further, the official foreign exchange reserves of the country may further fall by $500 million after repayment to the Chinese banks to make the reserves at a level to provide about half a month import cover.

For the last many trading sessions, the authorities were controlling the exchange rate. The recent fall in the rupee was seen after the government allowed market forces to decide the exchange rate.