KARACHI: The rupee’s downward trend continued on Wednesday as ongoing political unrest caused the currency to plunge to a fresh record low of Rs224.92 against the US dollar in the interbank market.
According to data issued by the State Bank of Pakistan (SBP), the rupee plummeted by a staggering Rs2.99, or 1.30 percent, in a single day to touch an all-time low of Rs224.92, exceeding the previous historic low of 221.99 set a day earlier.
Analysts explain the recent devaluation by pointing to the political unpredictability caused by the results of the Punjab by-elections.Dr. Khaqan Hassan Najeeb, a former adviser to the Federal Ministry of Finance, asserted that Pakistan has a market-based currency rate mechanism.
Najeeb stated that the recent adjustment of the Pakistani rupee is partially driven by uncertainties related to election results together with a Fitch rating. “In this regime trade imbalance and market influencing news make a lot of impact on currency fluctuations,” Najeeb added.
