KARACHI: In the midst of an ongoing political crisis, the Pakistani rupee continued to depreciate against the US dollar on Tuesday and struck a new low during intraday trade in the interbank market. The local currency is now worth 233 in the interbank market, up from 229.88 the day before.
One of the worst-performing currencies in the world, the rupee has fallen by 30.2 percent since the year’s beginning (2022). According to Tahir Abbas, the head of research at Arif Habib Limited, “the causes behind the rupee’s continuing drop were a shortage of dollars, political and economic uncertainties associated with ambiguity over commitment from friendly countries, which is needed for disbursement of IMF tranche.
“Fears about Pakistan’s faltering economy have increased as the country’s currency dropped by about 8% versus the US dollar in the most recent trading week, its foreign exchange reserves are below $10 billion, and inflation is at its worst level in more than a decade.
