Pakistani rupee drops further reaches 222.47

The rupee continuing its falling trend has reached 222.47 after further depreciation of Rs0.97 on Friday.

According to the State Bank of Pakistan (SBP), the rupee closed at 222.47 on the last working day of the current week against its Thursday’s closing value of 221.50, showing a depreciation of 0.44 percent.

The value of the rupee has declined by Rs16.64 or 7.52 percent since the start of the ongoing fiscal year [June 1].

Analysts have said that the long march of Pakistan Tehreek-e-Insaf along with dampened sentiment has caused a recent fall in the value of the local currency.

The rising risk profile and investment in dollars have spooked the situation.

On the other side, the risk of default has hit the highest level due to Pakistan’s five year credit default swap (CDS). The CDS value has reached at a 13-year high to 52.8 percent on October 25, that reflects the dwindling confidence of the investors.

According to Malik Bostan, Forex Association of Pakistan’s Chairman, the long march and the political instability has caused the down gradation of rupee. He has said that purchase of dollars by importers at higher rates was also pushing the price of greenback.

Bostan also said that on basis of further depreciation of rupee the proceeds have been stopped by the exporters just to earn higher profits. He urged the political parties to resolve the issue or else the value of rupee could further fall to set new record.

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