In the interbank market on Wednesday, the Pakistani currency hit a new all-time low of Rs170.96 against the US dollar, as demand for the foreign currency outstripped supply in the wake of rising commodity prices in the international market, a historic high trade deficit, and a worsening financial situation in Afghanistan.
The rupee has lost a total of 12.27 percent (or Rs18.69) since reaching a recent high of Rs152.27 on May 14.
Meanwhile, the rupee has lost 8.51 percent of its value, or Rs13.42, since June 2021.
On Wednesday, the rupee fell by Rs0.16, two days after the Pakistan Bureau of Statistics revealed that the country’s import bill increased to $6.47 billion in September 2021.
The demand for the US dollar has inevitably been influenced by an increase in imports, according to CEO Khurram Schehzad.
According to the expert, the import bill increased due to rising food and energy prices on the global market.
Exports and investment should both rise at the same time to balance the inflow and outflow deficit and enhance the rupee-dollar parity.
The evaluation of the $6 billion International Monetary Fund (IMF) initiative, according to Schehzad, will be crucial in determining the future of the local currency.
He believes the euro will continue to be under pressure through the end of 2021.