Pakistani currency has reached a record low of Rs168.30 against the US dollar on hypothetical demand for the foreign currency in the inter-bank market on Monday. The weakening currency may further increase a new round of price hikes and inflation in the country. A portion of the financial experts said the recharged interest for the dollars has risen up out of outside portfolio speculators who have kept on exiting Pakistan’s local debt market. Furthermore, shippers are on the ascent with reviving the neighborhood economy from the four-month-long lockdown.
BMA Capital Executive Director Saad Hashmi said, “The downward trend in rupee seems unsustainable, as the majority of related economic indicators are in favor of rupee.” Pakistani currency has hit an all-time low of Rs168.30 against the dollar.
The Rupee is the biggest decliner in Asia this year.
Besides, foreign investors are losing interest and are taking out money from Pakistan Investment Bonds (PIBs) and T-bills since late last week. A specialist estimated that devaluation in the rupee may have an immediate connection with the continuous International Monetary Fund’s (IMF) credit program worth $6 billion which “has been incidentally waiting for the recent months.”
Gold hit a record high of Rs111,250 per tola (11.66 grams) in Pakistan because of a descending pattern in rupee and upswing in the valuable yellow metal on the planet markets. Accordingly, changes in international price and rupee-dollar parity also impact local pricing.