Rupee dips further as country’s economy in trouble
The Pakistani rupee on Wednesday dipped to another low against the US dollar, which continued to strengthen for the ninth consecutive session during intra-day trade in the interbank market.
The rupee is trading at Rs237 in the interbank market, up from Rs232.93 yesterday, as it lost Rs4.07.
The rupee has been one of the lowest performing currencies in the world, falling by over 30% since the beginning of the year (2022).
But its depreciation is not restricted to local dynamics because the greenback is now at a 20-year high relative to other global currencies, partly because of the hope that the Federal Reserve will raise interest rates more quickly than most others.
Aside from that, traders said the continued worsening of political uncertainty and the lack of USD liquidity have put pressure on the local currency.
Fears about Pakistan’s shaky economy increased as the country’s currency fell about 8% against the US dollar last week. its foreign reserves declined to $9.3 billion as of July 15, and inflation reached its worst level in over a decade.