Karachi: The Pakistani rupee on Thursday May 12 broke all previous records against the US dollar and dropped to an all-time low of Rs191.77 in the interbank market, media reports said.
The local currency lost Rs 1.7 (or 0.91 per cent) during the day to close at Rs 191.77, surpassing Wednesday’s record low of Rs 188.66, The News reported.
Dried-up foreign currency inflows, coupled with a delay in the revival of the International Monetary Fund (IMF) bailout and a lack of financial support from friendly countries, are adding to the pressure on the local currency.
The decline was in line with the predictions of the analysts who fear more losses down the road as the country remains mired in political and economic instability, The News reported.
A day earlier, the rupee surpassed the critical threshold of 190 amid a persistent decline in the foreign exchange reserves due to hefty current account and trade deficits, and higher debt payments.
Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 21.72 per cent (or Rs 34.23) compared to the previous fiscal year’s close at Rs 157.54.
The rupee has maintained a downward trend for the last 13 months. It has lost 25.94 per cent (or Rs 39.5) to date, compared to the record high of Rs 152.27 recorded in May 2021.
Moreover, political unrest owing to PTI’s protest campaign against the government is eclipsing the new economic team’s focus on economic firefighting. Former Prime Minister Imran Khan has announced to march with millions of his supporters towards Islamabad after May 20 to demand new elections to add to the troubles of the economically-challenged PML-N led regime, The News reported.