Rupee Crashes to Record Low, Dropping Rs. 8.84 Against US Dollar Under New Govt

The Pakistani Rupee (PKR) continued its losing streak against the US dollar to reach an all-time low of Rs. 191.77. The local unit lost Rs. 1.75 against the greenback in the interbank market today. The PKR depreciated by 0.91 percent against the USD and closed at Rs. 191.77 today. Yesterday, the PKR lost Rs. 1.36 against the greenback at the close of the session, closing at Rs. 190.02. The greenback has already gained Rs. 8.84 against the rupee since the tenure of the newly formed coalition government. The rupee’s freefall has been attributed to a number of factors, however, the high import bill and the delay in the revival of the International Monetary Fund (IMF) bailout are the primary factors contributing to the rupee’s decline. The coalition government’s dash to Saudi Arabia for financial assistance also failed to yield positive results. The newly formed government was hopeful that the United Arab Emirates and China would also offer financial assistance, but without the IMF on board, any assistance seems unlikely. Discussions with IMF over policies for completing the seventh review of the country’s Extended Fund Facility (EFF) are expected to resume on May 18. However, the government will have to decide on the issue of fuel and electricity subsidies before the talks start. Komal Mansoor, Head of Research at Tresmark told ProPakistani, Discussing the local currency’s performance during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said in a tweet that the local currency has lost 9 percent of its value against the USD since the start of the Russian invasion of Ukraine. He said that the economic slowdown and high oil prices have also dented other currencies in the region. Rizvi added that there is no respite in sight. The PKR reversed losses against the other major currencies and reported gains in the interbank currency market today. It gained 38 paisas against the Euro (EUR), Rs. 1.01 against the Pound Sterling (GBP), and Rs. 1.01 against the Australian Dollar (AUD). However, PKR reported a loss of 83 paisas against the Canadian Dollar (CAD) and 47 paisas against the UAE Dirham (AED).