World News | Pakistani Rupee Dives to 228 Per US Dollar

Islamabad [Pakistan], July 22 (ANI): The Pakistani rupee on Friday surpassed all prior records against the US dollar after hitting a fresh record low of PKR 228 against the dollar in the interbank market.

The Pakistani rupee witnessed a PKR 1.56 or 0.68 per cent decline at the opening of the inter-bank market, Geo News reported.

Also Read | Who is Rishi Sunak? Here is Everything You Need to Know About The Indian Origin Candidate Who Could Replace Boris Johnson As British Prime Minister.

The data released by the State Bank of Pakistan (SBP) showed that the rupee fell to as low as 229 during the intraday trade, but it closed at PKR 228.27.

Analysts have said that the political uncertainty in the country due to the by-elections in Punjab and the delay in the International Monetary Fund's (IMF) programme has contributed to the slump of the Pakistani rupee.

Also Read | Monkeypox Outbreak: WHO Reconvenes Emergency Committee Meeting As MPV Virus Cases Exceed 14,000 Globally.

"The depreciation this week, amongst other factors, has been triggered by the political surprise that the electorate delivered in Punjab on the weekend, and this frenzy should fizzle out soon," Development economist Maha Rahman said.

"I usually also stress upon long-term planning but at this hour adept fire fighting is extremely critical," Rahman added.

Economist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said that trade deficit and market influencing news have a lot of impact on currency changes.

The former adviser to the finance ministry said that the political uncertainty and a Fitch ratings downgrade has influenced the free fall of the rupee, local media reported.

"With the pronounced rupee slide, financial institutions tried to cover import payments. It created a higher demand in the interbank," the former adviser said adding that exporters hold their proceeds during depreciation to yield a better rate in the future.

Meanwhile, Arif Habib Limited analyst Ahsan Mehnti is hopeful that the currency will recover soon as the IMF deal with the country will give it a "much-needed breather".

The IMF on Saturday said that Pakistan will receive USD 1.7 billion in tranches in the coming three to six weeks.

Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped over 30.65 per cent (or PKR 48.29) compared to the previous fiscal year's close at PKR 157.54.

The rupee has maintained a downward trend for the last 13 months. It has lost over 33.20 per cent (or PKR 50.56) to date, compared to the record high of PKR 152.27 recorded in May 2021, reported Geo News. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)

DISCLAIMER: This article is strictly for informational and educational purposes to raise awareness about the said topic. LatestLY DO NOT host, distribute, or provide links to sexually explicit content, leaked videos, or pirated material. Any search terms or keywords mentioned are solely for the purpose of explaining the viral trend and its associated dangers. We strongly condemn the circulation of non-consensual intimate imagery (NCII) and advise all readers to refrain from searching for or sharing such content, as doing so may lead to severe legal consequences.