Monday Sep 06, 2021
KARACHI: Pakistani rupee touched a low of Rs167.23 against the US dollar, weakening from a close of Rs166.91 on Friday.
It has lost nearly 10% (or Rs14.96) of its value since May 2021, largely because of worries over the widening trade and current account deficit and costly interventions in the currency market. Geopolitical worries have also come to the fore.
The local currency traded at 167.23 per dollar in the inter-bank market on Monday, down 0.19% or 32 paisas — Rs1.2 away from an all-time low of 168.43 recorded on August 26, 2020.
Speaking to Geo.tv, Forex Association of Pakistan President Malik Bostan said the influx of dollars into Afghanistan following the Taliban takeover has increased pressure on the rupee.
Bostan mentioned that the widening gap between the imports and exports of Pakistan has also mounted pressure on the local currency against the greenback.
The analyst said: “The forecast for the rupee depends on the situation in Afghanistan, however, most probably the currency will further depreciate during the week.”
The Pakistani rupee has become the worst-performing currency in Asia compared to its status as the world’s best performer six months ago, according to Bloomberg.
Earlier in March 2021, the rupee emerged as the world’s best-performing currency, when it appreciated around (4.09% to Rs153.55) against the US dollar from the opening level of January 1, 2021.