Pakistani Rupee falls to Rs189.5 against dollar in inter-bank

The Pakistani currency recorded a sharp drop of Rs3.39 on Thursday and plunged to an all-time low of Rs189.51 against the US dollar in intra-day trading in the inter-bank market owing to political turmoil in the country.

According to the Forex Association of Pakistan (FAP), the greenback appreciated by Rs3 over Wednesday's close of Rs186.13 to reach a new high of Rs189.25 in the interbank market today, reports DAWN.

Earlier on Wednesday, the dollar had closed 90 paisa up from Tuesday's Rs185.23.

The dollar was being quoted at Rs189.02 in interbank at 1:18pm.

Sources said that rupee dropped beyond Rs190 in the open market because only a nominal amount of the foreign currency is available for buying by individuals.

Experts said that uncertain domestic political situation was mounting pressure on the rupee.

Besides, the central bank also refrained from intervening in the market to rescue the sinking rupee. The country's foreign exchange reserves have depleted rapidly over the past six to seven weeks to a two year low of $12 billion.

Analysts stated that pressure mounted on rupee after the International Monetary Fund (IMF) once again placed its $6 billion bailout programme on hold.

Besides, Pakistan's trade deficit shot up 70% to $35.5 billion in the first nine months of current fiscal year 2022 which added to the depreciation.