Pakistani rupee plunges to 11-month low against US dollar
The Pakistani currency closed the day at Rs166.28 against the US dollar after losing Rs1.08 in a single day in the inter-bank trading.
Karachi Forex Association President Malik Bostan said that country’s foreign loans also increased by Rs850 billion after the US dollar soared in its value by 8.26 rupees since July 1st this year.
Another economist Asad Rizvi said, “Everyone is curious to know the reasons behind Pakistani rupee’s weakness because their expectation was after receiving IMF allocated funds market will stabilise. The SBP version is very clear, it’s the demand/supply factor that determines the exchange rate. Current Account is in deficit.”
Pakistan received $2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to support low-income countries affected by the coronavirus.
Reporter Ashraf Khan