Pakistan rupee’s slide down continued on Monday as it dropped to a new all-time low of Rs181.25 against the US dollar in the inter-bank market despite a decrease in the current account deficit.
Rupee closed at Rs180.57 on Friday.
The movement of the local currency against the greenback is being driven by sentiments, besides the demand and supply.
Moreover, the looming political crisis and worries about the next tranche of the International Monetary Fund (IMF) loan kept the currency under pressure.
There has been no progress on Pakistan and the IMF’s seventh review talks for the release of the next loan tranche following the breaches committed by the government on different fronts.
However, Finance Minister Shaukat Tarin claimed that Pakistan and the IMF staff-level agreement would be done this week as the world donor had sought details of the agreement between the Centre and provinces for financing PM’s Relief Package through which diesel, petrol and electricity prices were frozen at the existing level till June 2022.
Contrary to the expectations of the market, the declining current account deficit failed to entice investors and the currency continued to drop to new lows.