Pakistani rupee hits new low against US dollar amid political instability
Apr 05, 2022
Islamabad [Pakistan], April 5 : Amid the ongoing political crisis in the country, the Pakistani rupee (PKR) continued to decline against the US dollar in the interbank market as it hit a new low on Tuesday, reported local media.
The US dollar on Tuesday reached an all-time high against the Pakistani rupee, soaring to PKR 185.40 in the interbank market during intraday trading, reported ARY News citing forex dealers.
The Pakistani currency depreciated by PKR 1.31 against the dollar in the interbank market.
According to experts, political instability in the country amid controversy regarding the dismissal of the no-trust motion against Imran Khan and uncertainty surrounding the seventh review of the USD 6 billion International Monetary Fund (IMF) are the reasons for this continuous decline, reported the media outlet.
Notably, the local unit has been under pressure since the start of the current financial year as the dollar appreciated by PKR 26 since July 1, 2021.
Further, Pakistan's economic woes continue as the country's trade deficit has been on the rise for nine consecutive months owing to an unprecedented increase in imports while exports stagnated at around USD 2.5 billion to USD 2.8 billion a month.
According to the Pakistan Bureau of Statistics data, the country's trade deficit widened 70 per cent year-on-year to USD 35.4 billion during the nine months through March as imports near USD 60 billion, reported Dawn.
