The Pakistani Rupee (PKR) continues to fall against the US Dollar with the local currency hitting another record low against the greenback as it closed at Rs. 228.37 in the interbank market on Friday.
According to the State Bank of Pakistan (SBP), the Pakistani Rupee has depreciated by Rs. 1.56 (0.68%) against the US Dollar at the closing of the interbank market on 22 July 2022 (Friday) compared to 21 July 2022 (Thursday), when the local currency closed at Rs. 226.81 against the greenback.
The Pakistani Rupee has fallen by Rs. 24.19 in July despite news of successful talks with the International Monetary Fund (IMF) regarding release of the next tranche of the $6 billion loan programme. However, IMF’s delay towards release of the funds have also contributed towards fall of the Rupee.
One of the reasons for the downfall of the Pakistani Rupee (PKR) is the political uncertainty arising out of the outcome of the Punjab by-elections as Pakistani Tehreek-e-Insaf (PTI) recorded a landslide victory against Pakistan Muslim League – Nawaz (PML-N).
However, the State Bank of Pakistan (SBP) said that US Dollar’s appreciation is also the result of an aggressive interest rate policy adopted by the United States Federal Reserve to control internal inflation.
Meanwhile, Pakistan’s rating has been downgraded from stable to negative by Fitch Ratings. However, Finance Minister Miftah Ismail believes that the economy is on the right track and once political stability returns, the Pakistani Rupee will start to strengthen against the US Dollar.