The Pakistani rupees shattered all previous records on Tuesday, falling to a new low of 221 against the dollar Price in morning interbank trade.
The local currency fell by Rs5.80 in the interbank market after yesterday’s close of Rs215.20 Tresmark data showed.
The rupee was trading in the open market at Rs222 against the dollar today.
Data released by State Bank of Pakistan yesterday showed that the rupee lost Rs4.25, or 1.97%, against the US dollar.
It was the highest day-on-day depreciation after March 26, 2020.
On June 22, the rupee had closed at a record low of 211.93 against the greenback and since then the currency has remained volatile.
The ruling PML-N’s thumping in the Punjab by-elections has triggered political uncertainty along with import pressure taking the Pakistani rupee to new lows.
Analysts believe, however, that the domestic political and economic situation are not the only factors at play.
“The dollar is getting stronger in the global market almost against all the world currencies and the Pakistani Rupee is not exception,” said Alpha Beta Core CEO Khurram Schezad.
Speaking of Pakistan’s financial situation, Schezad said that the country’s external account issues “are not settled as yet, the IMF (International Monetary Fund) is yet to be on board, and the flows are yet to materialise”.
“Global rating agencies have put a negative outlook on the economy, so that is an additional burden that is weighing on the financial markets in general and foreign exchange market in particular,” he added.