The Pakistani rupee continued its downward slide against the US dollar on Thursday as it plunged to an all-time low of Rs. 192 in the interbank market.
As per the Forex Association of Pakistan, the US dollar surpassed the 191-mark at the start of today’s session and around 11:45 am it rose to Rs. 192.20, appreciating by Rs2 from the previous day’s close of 190.20 which was the previous all-time high value recorded for the dollar.
Russia-Ukraine conflict a reason behind rupee weakening
Since the Russian invasion of Ukraine, the Pakistani rupee has depreciated by approximately nine percent against the dollar to “hit all-time new lows”, Asad Rizvi, the treasury head at Chase Manhattan Bank told Mettis Global.
Rizvi further pointed out that along with the economic slowdown, accelerated inflation, and higher oil prices, the Russian offensive had also dented many other currencies, including the Indian rupee. And there was “no respite insight”, he said.
This continuous downward fall of the rupee against the dollar is also being attributed to Pakistan’s high import bill along with the delay in the release of a $1 billion tranche by the International Monetary Fund.
Chaos being anticipated:
The day-to-day devaluation of the local currency could cause a severe panic-like situation as investors are found clueless. The growing inflation and the devaluation of the rupee might lead to the declining purchasing power of consumers as traders ask for higher profits to save their investments.
Currency experts and dealers are afraid that the rupee will fall more speedily in the coming days until and unless inflows from anywhere appear on the horizon.
Currency dealer Zafar Paracha has termed the situation “dangerous” and fears that in light of the growing dollar demand, the rupee’s value might drop to Rs200 in the interbank market soon.