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XINHUA-PAKISTAN SERVICE

Pakistani rupee plunges to all-time low against U.S. dollarBreaking

August 04, 2022

The Pakistani rupee hit an all-time low against the U.S. dollar on Monday during the intraday trade in the interbank market, according to the State Bank of Pakistan (SBP). During the intraday trading, the rupee fell to as low as 232, but it closed at 229.88, losing 0.66 percent against the U.S. dollar, according to the figures released by the SBP, adding that the rupee closed at 228.37 on Friday last week. According to the country's economic experts, political impacts, low forex reserves, high import bill, and the delay in the release of a crucial over 1 billion U.S. dollar payment from the International Monetary Fund (IMF) to Islamabad and other global factors are mainly responsible for the rupee slump. Since December 2021, the Pakistani rupee has depreciated by 18 percent, and 12 percent of it is owing to the strengthening of the U.S. dollar globally, State Bank of Pakistan Deputy Governor Inayat Hussain said. Domestic factors are also at play.

We expect the demand- supply gap to narrow soon," the SBP official said on Sunday. Speaking to local media on Monday, Federal Minister for Finance and Revenue Miftah Ismail expressed confidence that the pressure on the rupee will reduce soon, saying the government is able to cut imports which have helped the country to save foreign exchange. Pakistan currently stands in a position where its new imports are less than exports and remittances," Ismail said. Pakistan is expected to receive the next tranche of the IMF by the end of next month, whereas 4 billion to 5 billion U.S. dollars are also expected from friendly countries along with an immediate investment in the country, the minister added.