The rupee weakened against the US dollar at Rs178.15 in the inter-bank market on Wednesday compared with Tuesday’s close of Rs178.05, 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. The rupee had been on the downtrend since hitting 22-month high of Rs152.27 in May 2021. The SBP has injected $1.2 billion into the inter-bank market to defend the rupee in the ongoing fiscal year and has pumped a total of $5.8 billion since the Pakistan Tehreek-e-Insaf (PTI) government came to power in August 2018.
Published in The Express Tribune, December 23rd, 2021.
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