Rupee hits all-time low against dollar
KARACHI: The rupee continued its slide against the dollar on Tuesday with the international currency hitting an all-time high of Rs188.66 in the interbank market.
According to the State Bank of Pakistan (SBP), the rupee lost 0.6 per cent or Rs1.13 on a day-on-day basis. The US currency appreciated by Rs1.84 in the preceding two sessions.
The rising exchange rate has rattled the economy. The rupee has been losing its value mainly because of an uncontrolled rise in imports and a relatively slower pace of growth in exports. This is reflected in the trade deficit, which reached $39 billion in July-April.
Currency dealers say higher demand for dollars is the key reason for the bullish trend in the currency market. Political foot-dragging by the incumbent government on the reversal of fuel and electricity subsidies — a prerequisite for the resumption of the loan programme by the International Monetary Fund — has further eroded the confidence of stakeholders.
Published in Dawn, May 11th, 2022