ISLAMABAD: The downward trajectory of the Pakistani rupee continued for the 10 consecutive session, where on Thursday it witnessed a devaluation of downward trajectory continued as it dropped to yet another record low against the US dollar, settling at 305.54 in the inter-bank market on Thursday. According to the State Bank of Pakistan, the local currency went down by Rs1.09 against the greenback (0.36 %) against its last-day value of Rs304.45.
Interbank closing #ExchangeRate for todayhttps://t.co/wZnBHxjjGt#SBPExchangeRate pic.twitter.com/1ajdB67TzJ
— SBP (@StateBank_Pak) August 31, 2023
Meanwhile, in the open market, the US dollar also continued its upward journey against the local currency and was traded in the range of Rs222 to Rs226, as compared to the last-day range of Rs220 to Rs223.
Pak Rupee Under Pressure
The Pakistani rupee remained under pressure since the caretaker government took over just weeks ago and witnessed a devaluation of over Rs 15.
According to the experts, the local currency’s sudden devaluation was due to the immediate removal of all kinds of restrictions on import restrictions, reflecting stress in the figures of the current account deficit.
In addition, as per the condition of the International Monetary Fund (IMF), Pakistan has to balance a currency gap of around 1.25% between the inter-bank and open market that paves the way for the informal market to play its part.
Meanwhile, the ongoing political and economic uncertainty made the situation even worse, damaging the trust of the investors to invest in other sectors, resulting in devaluation of the local currency and appreciation of gold rates in the country.
