According to statistics provided by the State Bank of Pakistan, the Pakistani rupee hit an all-time low of Rs169.97 versus the US dollar on Tuesday (SBP).
With a new drop of 0.22 percent, the local currency has surpassed the previous low of Rs169.6 set the day before (Monday).
According to central bank figures, the Pakistani rupee finished at 169.97 versus the US dollar, down 52 paisas or 0.31 percent.
“The currency pressure is import-driven,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), stated.
Geopolitical worries, like as the continued instability in Afghanistan, and a spike in international commodity prices, according to the expert, are also key factors in the rupee’s persistent devaluation.
Since its latest high of Rs152.27 on May 14, the rupee has lost a total of 11.62 percent (or Rs17.7).
It has dropped 7.89 percent, or Rs12.43, since June.
According to Abbas, the government and central bank are taking “proactive measures” to assist the currency consolidate in the future.
The central bank has modified consumer finance rules, which will assist to restrain economic demand growth, resulting in slower import growth and lending support for the balance of payments.
He said, “The government is also working on laws to limit the entry of luxury items.”
According to the analyst, the currency would now trade in a band of Rs169-170 in the future.
“The pressure on the currency will lessen as Pakistan prepares to restart negotiations with the International Monetary Fund (IMF) on October 4, and we are likely to continue the $6 billion programme,” Abbas explained.
Furthermore, as the situation in neighbouring Afghanistan stabilises, the currency parity is likely to improve.