Pakistani rupee suffers slump, down to 163.67 against US dollar Currency’
The Pakistani rupee dropped to its lowest value against the US dollar in almost ten months after a 0.76% fall in inter-bank trading on Monday.
At close, the Pakistani currency finished at Rs163.67 as per the State Bank of Pakistan (SBP). The greenback last touched the 163 mark against the PKR back in October 2020.
The currency’s decline has been ongoing since May this year as a widening current account deficit takes toll on the country’s economy. While Pakistan reported its highest export figures for July, many believe the import bill would be even higher.
“The pressure created due to import payments has led to an increase in demand for USD, and this demand/supply gap is weakening the rupee,” Head of Research at Pakistan Kuwait Investment Company Samiullah Tariq told.
The country witnessed a single month’s record highest import figure of $6.3 billion in June this year while the current account deficit remained $1.3 billion in this period.
“The current account deficit widened to $1.6 billion in June compared to $650 million in May,” said the SBP.