Pakistani currency shed around Rs. 3 against the US dollar to a 9 month low at Rs162 in the inter-bank market.
According to the State Bank of Pakistan (SBP), the rupee had closed at Rs. 159 on Tuesday.
While speaking to the media Arif Habib Limited Head of Research Samiullah Tariq said, “The latest drop in rupee is seen following the benchmark interest cut by 150 basis points to 11% in an emergency meeting yesterday.”
“The pressure on rupee partly mounted since foreign investors continued to pull out short-term investment from Pakistani debt and stock markets,” he remarked.
Similarly, Pakistani currency depreciated over 3% to Rs159 for one month till yesterday. Including Wednesday’s drop, the rupee has shed a cumulative 5% to Rs162 in intraday trade.
Coronavirus outbreak has increased uncertainties in economies around the world.
Samiullah Tariq said that the currencies of various countries are getting affected as the US dollar is getting strengthened globally.
The Mexican currency (peso) has weakened over 20% against the US dollar in the past one month till yesterday.