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Pakistani rupee falls to 230 against US Dollar

By Shgun S -- July 25, 2022 3:00 pm -- Updated:July 25, 2022 3:00 pm

Islamabad (Pakistan), July 25: The Pakistani rupee has declined to a record low against the US dollar with the exchange rate sliding to PKR 230, local media said on Monday.

The data provided by the State Bank of Pakistan (SBP) revealed that the Pakistani currency slumped to 230 during intraday trade, as compared to its rate of 228.37. The rupee has slumped nearly 8 percent against the US dollar during the last trading week, and the forex reserves of the country are below USD 10 billion with inflation at its peak in more than a decade, Geo News said.

"Markets are responding to these shocks in an unfairly broad-brush way, without paying enough attention to Pakistan's relative strengths," Acting governor of Pakistan's central bank Murtaza Syed stated.

Pakistan Rupee plunges to 200 against US dollar yet again

According to capital market expert Muhammad Saad Ali, the surge in political unrest in the Punjab province is to blame for the rupee's decline.

Noting that Pakistan has enough capital commitments for the next 12 months to cover its dollar outflows, he said, "note that BoP (balance of payments) pressures on the currency have eased."

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Ali continued, "I reiterate political uncertainty is weakening market sentiment and leading to more PKR depreciation."

Pakistani rupee stands at 200 against US dollar, maintains downturn in  market

After setting a new record low of PKR 228 against the dollar in the interbank market on Friday, the Pakistani rupee broke all previous lows against the US dollar.

According to information provided by the State Bank of Pakistan (SBP), the rupee dropped as low as 229 during intraday trading but ended the day at PKR 228.27.

As per analysts, the Pakistani rupee's decline has been exacerbated by the political unrest caused by the by-elections in Punjab and the delay in the International Monetary Fund's (IMF) programme.

Pakistani rupee stands at 200 against US dollar, maintains downturn in  market

"The depreciation this week, amongst other factors, has been triggered by the political surprise that the electorate delivered in Punjab on the weekend, and this frenzy should fizzle out soon," Development economist Maha Rahman stated.

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-PTC News

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