Rupee touches a new record low of 170.96

• Rising commodity prices, historic high trade deficit take a toll on Pakistani currency.
• The currency lost around 8.51% or Rs13.42 since June 2021.
• The rupee will remain under pressure till the end of 2021, says Khurram Schehzad.

KARACHI: The Pakistani currency touched a new all-time low of Rs170.96 against the US dollar in the inter-bank market on Wednesday as demand for the foreign currency stood higher compared to its supply in the wake of rising commodity prices in the international market, a historic high trade deficit, and worsening financial situation in Afghanistan.

With a fresh fall of 0.09%, the rupee has cumulatively shed 12.27% (or Rs18.69) since its recent high of Rs152.27 recorded on May 14.

Meanwhile, the currency lost around 8.51% or Rs13.42 since June 2021.

The rupee recorded a depreciation of Rs0.16 on Wednesday, two days after the Pakistan Bureau of Statistics reported that the country’s import bill surged to $6.47 billion in September 2021.

Speaking to Geo.tv, Alpha Beta Core's CEO Khurram Schehzad said that an increase in imports has naturally affected the demand of the US dollar.

The analyst stated that the import bill surged because of rising food and energy prices in the international market.

In order to improve the rupee-dollar parity, exports and investment should increase simultaneously to balance the inflow and outflow gap.

Schehzad added that the review of the $6 billion International Monetary Fund (IMF) programme will play an important role in setting the direction of the local currency.

He predicted that the currency will remain under pressure till the end of 2021.