Pakistani rupee lose value in the interbank market
On Tuesday, the Pakistani rupee continued to lose value in the interbank market, reaching a new low of 216.75 against the US dollar.
Throughout intraday trading, the rupee fell 1.55.
According to experts, the reason why the dollar has continued to rise is because of the political unrest caused by the PML-N’s crushing defeat by the PTI in the Punjab by-elections.
local currency decreased by Rs4.25, or 1.97 percent
The local currency decreased by Rs4.25, or 1.97 percent, to settle at an all-time low of Rs215.20, according to figures issued by the State Bank of Pakistan (SBP) on Monday.
After March 26, 2020, it has the highest day-to-day depreciation.
The rupee hit a historic low against the dollar on June 22 when it closed at 211.93, and since then, the zurrency has remained erratic.
Pressure on import payments
Samiullah Tariq, the Head of Research at Pakistan-Kuwait Investment Company, attributed the depreciation of the currency to political unpredictability and pressure on import payments.
The by-election results on Sunday provided clarity, according to the expert, but the market is still waiting for a future plan.
“Investors are expecting the future course of action as the market searches for direction. Does the coalition government want to call early elections?”