In intraday trade, the value of the dollar rises by Rs5.8 in the interbank market, reaching a new high of Rs221.
KARACHI: On Tuesday, the Pakistani rupee continued to lose value in the interbank market, reaching a new low of 221 against the US dollar.
Over the course of the day, the foreign currency increased by Rs5.80.
According to experts, the reason why the dollar has continued to rise is because of the political unrest caused by the PML-crushing N’s defeat by the PTI in the Punjab by-elections.
The local currency decreased by Rs4.25, or 1.97 percent, to close at an all-time low of Rs215.20, according to data released by the State Bank of Pakistan (SBP) on Monday.
It is the highest day-on-day depreciation after March 26, 2020.
The rupee hit a record low against the dollar on June 22 when it closed at 211.93, and since then, the currency has remained erratic.
Samiullah Tariq, the Head of Research at Pakistan-Kuwait Investment Company, attributed the depreciation of the rupee to political unpredictability and pressure on import payments.
The by-election results on Sunday provided clarity, according to the analyst, but the market is still waiting for a future plan.
Investors are speculating on the direction that the market will take as it searches for one. Does the coalition government intend to call early elections? In Tariq’s words.
The currency is depreciating, but Arif Habib Limited analyst Ahsan Mehanti expressed optimism that it would soon recover because all speculations favour the local currency.
Mehanti thought that the money Pakistan will get from the IMF after the staff-level agreement will give the local currency a “much-needed breather.”