Rupee slumps to new historic low of 176.20

• With a fresh decline of 0.42%, the rupee has depreciated by 11.84% since July 1, 2021.
• Tahir Abbas says currency market remained volatile because the "funds have not been materialised."
• The local currency last dropped to a record low of Rs175.73 against the US currency on Nov 12.

KARACHI: Pakistani currency plunged to an all-time low of Rs176.22 against the US dollar in the inter-bank market on Monday amid a strong demand of the greenback as widening current account deficit exerted pressure on the already fragile rupee.

According to the State Bank of Pakistan (SBP), the local currency closed at Rs176.20 against the greenback today while the rupee traded at Rs175.44 on Friday.

The local currency last dropped to a record low of Rs175.73 against the US currency on November 12.

The rupee has maintained the downtrend for the past six months. It has lost 15.71% (or Rs23.93) to date, compared to the 22-month high of Rs152.27 recorded on May 14.

With a fresh decline of 0.42%, the rupee has depreciated by 11.84% (or Rs18.66) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Speaking to Geo.tv, Arif Habib Limited's Head of Research Tahir Abbas said that despite positive news flow, the currency market remained volatile because the "funds have not been materialised."

"The funds from the International Monetary Fund (IMF) are expected to be received in January while funds worth $3 billion have not been received yet," he said.

The analyst predicted that the current account deficit for the month of November is expected to clock in at around $1.5 billion with imports to "stay at historic high levels."

Abbas noted that during the week the currency is expected to trade within a range of Rs175-176 against the greenback.