Karachi, May 13: The Pakistani rupee broke all previous records against the US dollar on Thursday and fell to an all-time low of 191.77 rupees in the interbank market, media reported.
The local currency lost 1.7 rupees (or 0.91%) during the day to close at 191.77 rupees, topping Wednesday’s record low of 188.66 rupees, The News reported.
The drying up of foreign currency inflows, coupled with a delay in the International Monetary Fund (IMF) bailout stimulus package and a lack of financial support from friendly countries, are adding pressure on the local currency.
The decline was in line with forecasts by analysts who fear more losses in the future as the country remains mired in political and economic instability, The News reported.
A day earlier, the rupiah rose above the critical level of 190 amid a persistent decline in foreign exchange reserves due to large current account and trade deficits and an increase in debt payments.
Since the start of this fiscal year (July 1, 2021) to date, the Rupee has collectively fallen by 21.72% (or Rs 34.23) from the previous fiscal year’s close at Rs 157.54.
the pakistani rupee has maintained a downward trend over the past 13 months. It has lost 25.94% (or Rs 39.5) so far, compared to the record of Rs 152.27 recorded in May 2021.
Moreover, political unrest due to the PTI’s protest campaign against the government overshadows the new economic team’s focus on fighting economic fires. Former Prime Minister Imran Khan has announced he will march with millions of his supporters to Islamabad after May 20 to demand new elections to escalate the problems of the economically beleaguered PML-N-led regime, a reported The News.