Pakistani rupee (PKR) took a sharp hit against both the US dollar (USD) and the UAE dirham (AED), reaching an unprecedented low. This decline has been attributed to the country’s present political uncertainty.
In response to this alarming economic development, the State Bank of Pakistan (SBP) also raised interest rates by 100 basis points. According to data provided by xe.com, the rupee’s value plunged to an all-time low of 288 against the USD and 78.5 against the AED on Tuesday evening.
This downward trend in PKR’s value against major global currencies is a cause for concern and requires urgent attention from the relevant authorities.
Despite its initial dip, the PKR managed to stabilize at 287.29 against the USD, having experienced a sharp drop of more than two percent within a single day.
In light of the complex political environment and growing rifts between the ruling party and the opposition, Pakistan is currently facing severe challenges. This rapidly worsening situation has the potential to further impact the country’s politics and economy.
According to the SBP, the country’s forex reserves were at around $4.31 billion as of mid-March. Market analysts have predicted that if the current economic instability continues, the PKR may fall further and reach 300 against the USD. In the open market, the PKR was already selling for 291, equivalent to 79.29 against AED.
