On Thursday, the local currency reaches an all-time low of Rs171.20 versus the US dollar.
- Due to a rise in global commodity prices, the local currency finishes at Rs171.20 in the interbank market.
- Since the beginning of the current fiscal year on July 1, 2021. The rupee has devalued by 8.67 percent.
- The downturn is projected to halt soon, as the rupee’s value would be stabilised. At present levels following the successful conclusion of IMF talks.
In the interbank market on Wednesday, the Pakistani rupee lost another seven paisas against the US dollar. Ending at Rs171.20, down from Rs171.13 the day before.
The local currency’s downward trend was maintained. As a result of higher global commodity prices, which raised demand for the US dollar.
In addition, the looming uncertainty surrounding current talks. Between the International Monetary Fund (IMF). And Pakistan fueled the downward trend.
According to figures given by the State Bank of Pakistan, the rupee has depreciated 8.67 percent (or Rs13.66) from the beginning of the current fiscal year on July 1, 2021. (SBP).
According to central bank data, it has lost 12.43 percent (or Rs18.93) since reaching a recent high of Rs152.27 against the greenback on May 14, 2021.
Many believe that the rupee’s downturn will soon come to an end, as the successful conclusion of talks between the IMF and Pakistan to resume a $6 billion loan programme will stabilise the rupee’s value at present levels.
“If policy negotiations between Pakistan and the IMF are successful during the three days from October 13 to 15. The rupee volatility would end,” Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq told Geo.tv.
Analysts previously expected that the rupee will trade in a range of Rs170-171 this week.
It’s worth noting that the central bank has chosen a flexible exchange rate. To allow market forces to determine the rupee’s per dollar value based on foreign currency demand and supply.
However, if the two parties are unable to reach an agreement and the talks fail. The rupee may fall below multiple key support levels.
Analysts also predicted that the government’s and central bank’s efforts to ease the pressure on the rupee would begin to bear fruit in November or December.