Rupee-drops-to-record-low-of-Rs1708-against-USD-The-Correspondent

The rupee strengthened against the US dollar at Rs181.69 in the inter-bank market on Thursday compared with Tuesday’s close of Rs181.82, according to the State Bank of Pakistan (SBP).

Currency dealers said that the domestic currency continued gaining ground on slowdown in the demand for the US currency from importers and an optimistic economic outlook amid political stability.

The rupee has maintained a downward trend for the last 11 months. It has lost 19.32 percent (or Rs29.41) to date, compared to the record high of Rs152.27 recorded in May 2021.With a fresh rise of 0.07 percent, the Pakistani rupee has depreciated by 15.85 percent (or Rs24.15) since the start of the current fiscal year on July 1, 2021, data released by the State Bank of Pakistan revealed.

The political stability after new Prime Minister Shehbaz Sharif took office and likelihood of resumption of stalling International Monetary Fund’s $6 loan programme helped the rupee gain in the last five sessions.

The rupee hit all-time low since the vote of no-confidence moved against former prime minister Imran Khan. The political vacuum of having no government, deferment of the IMF programme, lack of clarity of China’s roll in deposit and reduction in the foreign exchange reserves had contributed to the rupee’s slide.

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