Rupee falls to new record low

Cash deposit by Saudi Arabia helped rupee to appreciate; the recovery proved short-lived

KARACHI:

The rupee weakened against the US dollar at Rs177.61 in the inter-bank market on Thursday compared with Wednesday’s close of Rs177.43, according to the State Bank of Pakistan (SBP).

This is an all-time low value for Pakistani currency as demand for the foreign currency stands higher compared to its supply in the wake of expanding current account deficit, swelling imports, rising global commodity prices and uncertainty about the resumption of IMF loan programme.

Earlier, the announcement of $3 billion cash deposit by Saudi Arabia in the State Bank helped the rupee to appreciate, however, the recovery proved short-lived. 

Published in The Express Tribune, December 10^th, 2021.

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