Pakistan Rupee plunges to 200 against USD
Jun 07, 2022
Islamabad [Pakistan], June 7 : Pakistan Rupee on Monday breached the 200 mark against the US dollar once again in the interbank market.
According to the State Bank of Pakistan (SBP), the local currency shed Rs 2.14, or 1.07 per cent, against the greenback on Monday.
The Pakistani rupee plunged to 200.06 and the downtrend is expected to continue till the budget 2022-23 announcement and revival of the multibillion-dollar International Monetary Fund (IMF) programme, reported Geo News.
According to the State Bank of Pakistan (SBP), the local currency shed Rs 2.14, or 1.07 per cent, against the greenback on Monday.
The last time the rupee had breached the 200 mark was on May 19, when there was higher uncertainty over the revival of the IMF loan programme than now.
The local currency closed at an all-time high of Rs 202 against the US currency on May 26, reported Geo News.
The local currency only depreciated after the government hiked the price of petroleum products by a major Rs 30 per litre as a result of removing subsidies -- one of the main demands of the money lender.
Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 26.98 per cent (or Rs 42.52) compared to the previous fiscal year's close at Rs 157.54.
The rupee has maintained a downward trend for the last 13 months. It has lost 31.38 per cent (or Rs 47.79) to date, compared to the record high of Rs 152.27 recorded in May 2021.
Renewed pressure on the rupee on an increase in fiscal-year-end dollar demand from importers and the corporate sector will keep the local currency under pressure.
Pakistan's foreign exchange reserves decreased by USD 366 million to USD 15.7 billion in the week ended June 2, reported Geo News.
Meanwhile, the State Bank of Pakistan's reserves dropped to USD 9.72 billion.
Financial expert Asad Rizvi said that credit rating agency Moody's had last week downgraded Pakistan's outlook from stable to negative due to external financing factors, to which the market reacted and the rupee dipped.
