Rupee's downward spiral continues unabated for seventh session

• Rupee drops to Rs181.73 against the US dollar in the interbank market.
• Currency rates of US dollar, Canadian dollar, euro, dirham, and UK pound against Pakistani rupee.
• Rupee has depreciated by Rs24.19 since July 1, 2021.

KARACHI: Pakistani currency dropped to another record low for a seventh straight session on Tuesday, as it hit a new all-time low at Rs181.73 against the US dollar in the inter-bank market weighed down by rising oil prices and uncertainty surrounding the completion of the seventh review of the $6 billion International Monetary Fund (IMF) loan programme.

Speaking to Geo.tv, Arif Habib Limited Head of Research Tahir Abbas said that the currency is continuously depreciating because of an increase in oil prices in the international market.

“Moreover, uncertainty regarding the delay in the ongoing talks between the International Monetary Fund (IMF) and Pakistan is taking a toll on the currency,” he said.

Analysts also believe that uncertainty in domestic politics — in the backdrop of the no-confidence move against Prime Minister Imran Khan in parliament scheduled for March 25 — also weighed on the rupee.

The meltdown in domestic currency was against expectations of a partial recovery this week, following the country’s current account deficit surprisingly narrowed to one-fifth at $545 million in February against an all-time high of $2.53 billion recorded in the previous month of January.

Meanwhile, open market forex rates of other currencies against the Pakistani rupee are as follows: