Ahmed Mukhtar Naqshbandi
KARACHI: Pakistani rupee has turned out to be the worst performing currency in Asia, as it hit a new all-time low of Rs270 against the US dollar in the interbank on the third consecutive working day on Monday, local media reported Tuesday.
In a bid to revive the stalled IMF loan programme worth $6.5 billion, the government has surrendered its control over the exchange rate, allowing the market forces to determine the value of the rupee.
Resumption of the IMF programme – due to begin early next month if successful – will help the country to fetch new foreign debt inflows worth around $3-4 billion within few months. The funds will help improve the foreign exchange reserves in the country and avert the looming risk of default.
The local currency freshly devalued by 2.61 percent (or Rs7.03) to a new all-time low at Rs269.63 against the US dollar on Monday compared to close at Rs262.60 a day earlier. The Pakistani currency had hit an intraday low of Rs270.10 during the day.
Cumulatively, the rupee slumped by 14.36 percent in three days
Cumulatively, the rupee slumped by 14.36 percent (or Rs38.74) in the three days to date, compared to Wednesday’s close at Rs230.89. The rupee, however, emerged as the second worst performing currency in a period of one year after Sri Lanka. The Pakistani currency was compared with 11 other Asian currencies on the index including India, Bangladesh, Sri Lanka and Vietnam.
The local currency has lost 16 percent so far in FY23 and 34.5 percent in one-year compared to January 30, 2022. Sri Lankan currency dived by 45.1 percent in one-year period. Meanwhile, the price of gold continued to skyrocket against the rupee’s devaluation. The price jumped up by a fresh Rs1,500 per tola (11.66 grams) to Rs210,500 per tola in Pakistan on Monday.
