The Pakistani Rupee (PKR) has plunged to a new low of Rs. 300 against the US Dollar (USD) for the firs time in the country’s history and the local currency is expected to continue this downward trend in the coming days.
According to the State Bank of Pakistan (SBP), the Pakistani Rupee (PKR) closed at Rs. 300.22 against the US Dollar in the interbank market on Thursday, which was a depreciation of Rs. 0.58 compared to Wednesday, when it reached Rs. 299.64.
It is pertinent to mention that local currency fell as low as Rs. 300.25 against the greenback during the first 30 minutes of intraday trading before closing at Rs. 300.22 at the closing of the interbank market.
Meanwhile, the open market rates are even higher and the US Dollar is being sold between Rs. 308-312 and the situation is expected to get even worse in the coming days as demand for the greenback has increased due to hoarding by sellers.
On the other hand, the black market for the US Dollar continues to thrive as it has been able to maintain a gap of Rs. 15 with rates between Rs. 312-318.
The State Bank of Pakistan (SBP) Governor, Dr. Inayat Hussain, has told the Senate Committee on Finance and Revenue that main reason for the depreciation for the Pakistan Rupee (PKR) is increased demand for the US Dollar from the public as as lifting of import restrictions that have put pressure on the foreign exchange reserves.
In total, the Pakistan Rupee (PKR) has depreciated by over Rs. 82 since the start of the year and over Rs. 129 since the ouster of Imran Khan from office, which led to serious political instability in the country.