Rupee Sinks to New Low Against the US Dollar But Rises Against Other Currencies

The Pakistani Rupee slid to a new all-time low against the US Dollar today. It lost 16 paisas to close at 170.96, after staying more or less stable yesterday. The Rupee has been depreciating steadily over the past few months and has fallen more than 11 percent since its peak in May. Analysts have attributed the local currency’s depreciation to rising imports, a widening current account deficit, and political instability in Afghanistan. World Bank Senior Economist, Gonzalo Varela, argued in a tweet that Pakistan’s trade deficit issue is due to stagnant exports, not a spike in imports. Brent crude prices have climbed past $82 per barrel, and market sources say that the government will raise prices of petroleum products further in October. Meanwhile, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, said that the PKR’s value is likely to be volatile until the ongoing talks with the International Monetary Fund conclude. The PKR also lost 4 paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED). Meanwhile, it gained 35 paisas against the Euro, 52 paisas against the Pound Sterling (GBP), 44 paisas against the Australian Dollar (AUD), and 27 paisas against the Canadian Dollar (CAD).