KARACHI: Pakistani currency depreciated around Rs3 against the US dollar to a nine-month low at Rs162 in intra-day trade in the inter-bank market on Wednesday.
The rupee surpassed the crucial threshold mark of Rs160 for the first time in the past nine months on Wednesday.
However, the rupee had closed at Rs159 on Tuesday, according to the State Bank of Pakistan (SBP).
“The latest drop in rupee is seen following the benchmark interest cut by 150 basis points to 11% in an emergency meeting yesterday,” Arif Habib Limited Head of Research Samiullah Tariq said while talking to The Express Tribune.
The pressure on rupee partly mounted since foreign investors continued to pull out short-term investment from Pakistani debt and stock markets, he added.
Similarly, Pakistani currency shed over 3% to Rs159 for one month till yesterday.
Including Wednesday’s drop, the rupee has depreciated a cumulative 5% to Rs162 in intraday trade.
The coronavirus pandemic has kept uncertainty on economies around the world, including Pakistan, Tariq said.
He said the US dollar is getting strengthened globally. This has impacted the currencies of many emerging and poor economies in the world.
The Mexican currency (peso) has weakened over 20% against the US dollar in the past one month till yesterday.