KARACHI: The Pakistani rupee on Thursday hit new historic low as the local currency fell by Rs18.98 or 6.66% against the US dollar in the interbank market.
As per the State Bank of Pakistan (SBP), the rupee settled at 285.09 against the greenback, a decline of Rs18.98 in the inter-bank market.
Earlier during the day, the rupee had depreciated to 284.88 against the US dollar in the inter-bank market before posting a minor recovery that proved short-lived.
Interbank closing #ExchangeRate for todayhttps://t.co/V7Z9UmMJ6o pic.twitter.com/Joq88JGzAM
— SBP (@StateBank_Pak) March 2, 2023
On Wednesday, the rupee also fell sharply against the US dollar, although the decline was less severe as the currency ended the day at 266.11 after losing 1.73%, or Rs4.61, in the interbank market.
The rupee had previously experienced a sharp decline when it moved from 230.89 to 255.43 on January 26 as a result of the government loosening what were perceived as administrative procedures to control the currency.
Analysts attributed the record drop — which is 7.04pc — to the government’s impasse with the International Monetary Fund (IMF).
A move to a market-based currency exchange rate regime is one of a list of actions the IMF wants Pakistan to complete to clear its 9th review.
Meanwhile, Pakistan has already taken most of the other prior actions, which include hikes in fuel and energy tariffs, the imposition of new taxation measures, and withdrawal of subsidies in export and power sectors.
