KARACHI, July 20(ABC): After shattering all previous records, the Pakistani rupee on Wednesday further depreciated to Rs226 after losing 4.1 against the US dollar in the interbank market.
The Pakistani rupee had hit an all time low on Tuesday as well of 224 against the dollar in the afternoon interbank trade, before closing at 221.99.
It was the highest day-on-day depreciation after June 26, 2019 when the currency fell by Rs6.80.
Meanwhile, the Pakistan Stock Exchange witnessed a negative trend as the KSE-100 index fell 248 points to 40,140 points.
PML-N’s thumping in the Punjab by-elections triggers political uncertainty
The ruling PML-N’s thumping in the Punjab by-elections has triggered political uncertainty along with import pressure taking the Pakistani rupee on a downward trajectory.
Analysts believe, however, that the domestic political and economic situation are not the only factors at play.
“The dollar is getting stronger in the global market almost against all the world currencies and the Pakistani rupee is not the exception,” said Alpha Beta Core CEO Khurram Schezad.
‘IMF is yet to be on board’: Khurram Schezad
Speaking of Pakistan’s financial situation, Schezad said that the country’s external account issues “are not settled as yet, the IMF (International Monetary Fund) is yet to be on board, and the flows are yet to materialise”.
“Global rating agencies have put a negative outlook on the economy, so that is an additional burden that is weighing on the financial markets in general and foreign exchange market in particular,” he added.
