Saturday, June 22, 2024

Pakistani Rupee hits All-Time Low of Rs. 272 Against Dollar

The Pakistani rupee gained further ground against the dollar on Thursday, a day after taking a breather following the progress in talks with the International Monetary Fund (IMF).

The Pakistani rupee plunged drastically to approach an all-time low, a week after currency exchangers lifted a cap on the rupee-dollar rate. The US dollar traded at Rs 265.49 in the inter-bank market after the local currency gained Rs 2.40.

The rupee has gained Rs4.15 in the last two days after hitting a historic low on Monday. On Monday, the greenback was quoted at 272 during intra-day trading, with a depreciation of Rs 7.

According to the Exchange Companies Association of Pakistan, the rupee has fallen nearly 15%. The losing streak of the rupee was contained as the federal government ended its control over its price following stern directions from International Monetary Fund (IMF) officials to revive the $7 billion loan programme.

The rupee became the region’s worst-performing currency so far this year, slumping 16%.

The crisis-hit country is dealing with a serious balance of payments crisis. Moreover, It has just about three weeks’ worth of import coverage in foreign exchange reserves. To prevent default, Pakistan is attempting to obtain international financing.

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