Rupee maintains record-breaking downward streak

• Decline comes on back of strengthening US dollar in global markets and political uncertainty.
• Analysts believe the rupee is facing double pressure.
• Rupee fell past the Rs182-mark for the first time on Monday.

Karachi: Owing to the strengthening US dollar in global markets and uncertainty triggered by a no-confidence motion against Prime Minister Imran, the Pakistani rupee on Tuesday maintained its record-breaking downward streak, as it depreciated beyond Rs182.34 against the greenback for the first time in history.

Analysts believe the rupee is facing double pressure as it is losing ground due to the challenges in the national economy owning to political crisis coupled with the appreciation of the US dollar against world currencies.

Read more: Political crisis pose downside risks to Pakistan's economic recovery, says finance ministry

Speaking to Geo.tv, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said that the current round of depreciation was caused by “outflows by foreigners from the government securities.”

“In terms of the real effective exchange rate (REER) we are very competitive now,” he said, predicting that the rupee would stabilise after the end of March as quarter-end payments would also be completed.

The local unit fell past the Rs182-mark against the US dollar on Monday for the first time in the interbank market in the history of Pakistan.

Earlier, Alpha Beta Core CEO Khurram Schehzad had said that political uncertainty is taking a toll on the local currency.

Read more: Pakistan’s debt-to-GDP ratio highest in CAREC region, reports ADB

“Whenever there is uncertainty in the country all commodity markets including, the currency market and stock exchange face the wrath of the unrest,” he had said, adding that rising commodity prices in the international market is also impacting the movement of the local currency.

The analyst further predicted that the movement of the rupee against the greenback is expected to remain downward till the end of the fiscal year 2021-22.

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