Rupee Breaks Previous Record Dropping to Historic Low Against the US Dollar

The Pakistani Rupee (PKR) fell to a new all-time low against the US Dollar today.

It lost 30 paisas against the US Dollar (USD) and closed at 171.04 today. Yesterday, it lost 21 paisas against the US Dollar (USD) and closed at 170.74.

The Rupee’s prior record low against the USD was 170.96, which the local unit set last week on 6 October.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities told ProPakistani,

Currency is constantly depreciating due to trade deficit & probable debt repayments. Nearly finding equilibrium. Although on REER, depreciation is unwarranted. However, the policy seems to be to support export growth.

The fall is due to high payments from the import side, as well as high global commodity prices and outflow of dollars, according to an analyst from financial market research company Tresmark.

Market observers expect that the rupee will remain under pressure and may touch 180 in a few weeks.

https://twitter.com/asadcmka/status/1447746131585347586

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said that the State Bank of Pakistan is taking a number of administrative measures to check the Rupee’s fall.

https://twitter.com/ArifHabibLtd/status/1447887192983015424

Arif Habib Limited said that the Rupee has depreciated 10.97 percent against the USD since its recent peak on 14 May.

The PKR lost 27 paisas against the Euro, 48 paisas against the Australian Dollar (AUD), 14 paisas against the Canadian Dollar (CAD),  and eight paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).

Meanwhile, it gained 54 paisas against the Pound Sterling (GBP).