KARACHI
Pakistani rupee fell to another all-time low of 299.64 against the US dollar in the interbank market on Wednesday and depreciated by 63 paisas (-0.21 percent).
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 299.01 against the dollar in the interbank market and closed at 299.64.
Earlier, the rupee hit all-time lows of 299.01 per dollar a session earlier and 298.93 per dollar on May 11 in the backdrop of a deepening political turmoil and widespread law and order disturbances after former prime minister Imran Khan’s arrest in a case. Interestingly, all these lows were recorded when the former prime minister was/is in jail.
The rupee depreciated by Rs7.27 against the US dollar last week and devalued by Rs3.86 during this week. During the current fiscal year 2023-24, Pakistani rupee has shed Rs13.65 against the US dollar in the interbank market, while it plummeted by Rs72.21 against the greenback in the current year.
Similarly, the local unit depreciated against the greenback in the open market by Rs5 (-1.62 percent). The rupee was quoted in the range of 311-314 against the dollar in the open market as compared to 306-309 a session earlier. In the black market/Hundi, the dollar was traded at Rs328 against Rs323 a session earlier.
According to currency experts, the demand for the dollar remained high as imports are opening up gradually. They said the rupee’s recent decline can be attributed to the removal of restrictions on letters of credit (LCs), which has led to an increased demand for dollars and subsequently weakened the rupee. They said that the local unit continues to face immense pressure amid political uncertainty surrounding the general elections, which is causing turbulence in local markets.
They said the rupee’s depreciation was expected, as under the agreement with the International Monetary Fund (IMF), the difference between the open market and the interbank market should be one percent.
