Domestic political tensions and negative economic hands held the Pakistani rupee under pressure as the currency closed above the 186 level against the US dollar for the first time after gaining 0.48% in the interbank market on Wednesday.
According to the State Bank of Pakistan (SBP), the rupee closed at 186.13, its lowest in history, after a daily depreciation of 90 paise.
The rupee has lost more than 18 percent since its last high in May last year, while the local currency has depreciated more than 15% (FYTD). Since March 2022 alone, the rupee has traded almost 5% against the dollar.
“All this political uncertainty needs to be resolved,” Saad Hashmey, CEO of BMA Capital, told Business Recorder. “Before the ongoing political turmoil, we were on a reform path as the country’s current account deficit narrowed. However, since there is no government, this reform path is now unclear. Of course, the rupee will fall,” Hashmi said.
