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Monday, August 8, 2022
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Another ‘historic low’ for rupee as US dollar touches 222

The Pakistani rupee fell to another historic low on Tuesday, closing at Rs222 in the interbank market.

According to the State Bank of Pakistan, the rupee had fallen to Rs221.99 as markets closed for the day, depreciating Rs6.79 against the previous day’s close of Rs215.20.

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A market expert told local media that the rupee’s fall could be attributed to the panic resulting from the Pakistan Muslim League-Nawaz’s loss in Sunday’s by-polls in Punjab, which had engendered fears of a change of government in Punjab and the centre.

The local currency had decreased to settle at an all-time low of Rs215.20 on Monday.

The rupee has been under intense pressure over the past several months as a result of dollar’s rising demand and a steady drop in the State Bank’s foreign exchange reserves.

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The surge in imports and the requirement to make debt repayments are the key drivers of the demand for the dollar, according to experts.

The currency had recently recovered as Pakistan was anticipated to receive the next loan tranche from the IMF in the range of $1.2 billion.

Resuming the loan program will increase the nation’s ability to make international payments and unleash foreign currency inflows from other bilateral and multilateral sources as well.

In addition, China recently rolled over its $2.3 billion loan to Pakistan.

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