The Pakistani Rupee slipped to its lowest against the US dollar in 2021, exceeding the Rs. 167 mark today, which was last seen in August 2020.
The local unit loss 32 paisas against the US dollar (USD) to close at Rs. 167.32.
Last week, the local currency had slid for four consecutive days against the USDÂ before recovering slightly and closing at 166.91 on 3 September.
A.A.H Soomro, the Managing Director at Khadim Ali Shah Bukhari Securities, told ProPakistani that Pakistan’s trade deficit is widening and that Afghanistan’s political turmoil has ratcheted up the demand for US dollars. He also warned that further devaluation in the rupee may shake investors’ confidence.
The founder and CEO of Currency Market Associates, Asad Rizvi, tweeted that Afghanistan’s political uncertainty has disrupted the country’s dollar supply, which may have a spillover effect in Pakistan.
He added that the State Bank of Pakistan may have to monitor the open market exchange rate and “narrow down the gap”. Asad also stated that New York is closed today, which is why the quotes are for value tomorrow.Â
Inter Bank Market
In my Aug 17 tweet,I said uncertainty in Afghanistan is bothering me because after freezing of funds we may have spillover effect.
SBP will have to check & monitor OPEN MARKET RATE & narrow down the gap.Else #PKR one sided journey will remain pain in the neck— Asad Rizvi (@asadcmka) September 6, 2021
The PKR also depreciated against other major currencies today. It lost 26 paisas against the Euro, 61 paisas against the Pound Sterling (GBP), 22 paisas against the Canadian Dollar (CAD), and 25 paisas against the Australian Dollar (AUD).
It also lost nine paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).
