In the interbank market on Wednesday, the Pakistani rupee fell to an all-time low of Rs240 against the US dollar as the currency continued to face pressure from a hawkish US Federal Reserve and high oil prices.
The rupee’s freefall has lasted 14 working days in a row. On Tuesday, the local currency had reached a high of Rs238.91.
In total, the rupee has lost over 12% (or Rs25.40) in the past 14 days when compared to its closing price on August 1, 2022, which was Rs214.60.
The Pakistani rupee just dropped to a record low of Rs239.94 on July 28. In the recent past, the Pakistani currency hit its former record low of Rs239.94 on July 28.
The rupee’s downward trend made it the developing market currency with the weakest performance on Tuesday.
The Gulf Cooperation Council (GCC) countries’ delayed inflows of promised funding, according to an observer of emerging markets, have hurt the currency.
The local currency, on the other hand, was declared the best-performing currency in developing markets in August 2022 a month ago.
According to the expert, the IMF’s acceptance of the $1.16 billion loan tranche had contributed to the stabilization of the currency.
According to experts, the dollar’s strength versus other currencies is mostly to blame for the rupee’s decline as the Fed hinted at raising interest rates by 0.75% in the US’s upcoming monetary policy.
Additionally, the losses brought on by the terrible floods increased the need for dollars to import agricultural items, notably cotton. Due to the rising rate of inflation in the west, textile exporters are worried about losing business. As a result, the Pakistani rupee may continue to decline versus the dollar.