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Pakistani rupee registers all-time low against the US dollar
Pressure on the rupee has increased due to Pakistan`s current account deficit.
Highlights
- Current deficit increased pressure on Pakistani rupee
- US dollar has become very strong in Pakistan
Pakistani rupee neared an all-time low after another fall against the US dollar. As per the State Bank of Pakistan (SBP), the currency closed at 168.02 against the dollar in the inter-bank market, registering a decline of Rs 0.36 or 0.21 per cent.
Dropping below the 168 level, the Pakistani rupee inched near all-time low recorded against the US dollar on August 26, 2020, reported Business Recorder.
As per Arif Habib Limited, the Pakistani rupee has lost 6.2 per cent since June 2021 and 9.4 per cent against the USD since its recent high recorded on May 14, 2021.
"Rupee's decline can only be stopped if imports are curtailed, and exports/remittances increase," Malik Bostan, Chairman Forex Association of Pakistan, told Business Recorder.
Pressure on the rupee has increased due to Pakistan's current account deficit that has widened in recent months due to the high import bill.The rise in import bills is attributed to a hike in international oil prices in August, import of commodities, raw materials, and machinery. However, some luxury items also seem to be part of the mix.Bostan said that the government should take strict measures to curb the import of luxury items, especially autos.