Pakistan Rupee plunges to 200 against US dollar yet again
Islamabad (Pakistan), June 7: Pakistan Rupee breached the 200 mark against the US dollar once again in the interbank market on Monday.
On Monday, the Pakistani rupee fell by Rs 2.14, or 1.07 percent, against the US dollar, according to the State Bank of Pakistan (SBP).
According to Geo News, the Pakistani rupee fell to 200.06, and the depreciation is projected to continue until the announcement of the budget for 2022-23 and the revival of the multibillion-dollar International Monetary Fund (IMF) programme.
The rupee last breached beyond the 200-mark on May 19, when there was considerable uncertainty about the revival of the IMF loan programme than there is now.
On May 26, the local currency reached an all-time high of Rs 202 against the US dollar, according to Geo News.
The local currency only declined after the government raised the price of petroleum products by Rs 30 per litre as a result of removing subsidies, which was one of the money lender's main demands.
The rupee has dropped by a massive 26.98% (or Rs 42.52) since the start of this fiscal year (July 1, 2021) to date, compared to the previous fiscal year's close of Rs 157.54.
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The rupee has been declining for the last 13 months. It has lost 31.38% (or Rs 47.79) to date, compared to the record high of Rs 152.27 in May 2021.
The rupee will face renewed pressure as fiscal-year-end dollar demand from importers and the corporate sector rises, putting pressure on the local currency.
According to Geo News, Pakistan's foreign exchange reserves fell by USD 366 million to USD 15.7 billion in the week ending June 2.
Meanwhile, the reserves of the State Bank of Pakistan have fallen to USD 9.72 billion.
According to financial analyst Asad Rizvi, credit rating agency Moody's lowered Pakistan's outlook from stable to negative last week due to external financing factors, causing the market to react and the rupee to drop.
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-PTC News
