The Pakistani rupee (PKR) slumped to an all-time low against the dollar for the second day in a row on July 19, closing at Rs222 in the interbank market.
The greenback was up Rs8.8, or 4 percent, against the previous day’s close of Rs215.20 to reach Rs224 around 2:30pm, according to the Forex Association of Pakistan.
The rupee closed at Rs221.99, according to the State Bank of Pakistan (SBP).
The PKR continuously falling because of rising import bills and uncertainty arising from the current political situation.
Pakistan is currently facing a widening current account deficit and depleting forex reserves. Last week, the country reached a staff-level agreement with the International Monetary Fund (IMF) which is expected to release $1.17 billion after the approval of the IMF board in the next six weeks. However, some experts say the funds may not be enough to overcome the economic problems.
Fitch Ratings revised its outlook for Pakistan to negative, citing a decline in the country’s external liquidity position and financing conditions since the beginning of the year.