Pakistan’s rupee closes near 174 as depreciation continues

Pakistan’s rupee continued to weaken, depreciating another 0.28% to close near 174 against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the PKR closed at 173.96 against the USD, a day-on-day depreciation of 49 paisas or 0.28%. On Wednesday, the PKR had dropped to the-then record low of 173.47.

 

The PKR has lost 12.46% of its value against the greenback since its recent high in May. It has depreciated by 9.44% during the ongoing fiscal year, and 8.12% during the calendar year.

The rapid depreciation within the space of a few months has raised concerns over inflation.

However, SBP Governor Dr Reza Baqir looked to point out the positive, saying that PKR depreciation benefits overseas Pakistanis, who provide Pakistan with billions of dollars as remittances.

While talking to media persons in Manchester, the ex-IMF official said any economic policy benefits one section over the other.

“Rising dollar rates benefit some people and harm others. Overseas Pakistanis benefit because their family members receive more remittances. We should not forget those who benefit,” the SBP chief official had said.