The rupee weakened to an all-time low against the US dollar at Rs179.44 in the inter-bank market on Wednesday compared with Tuesday’s close of Rs179.22, according to the State Bank of Pakistan (SBP).
The rupee fell further as demand for the dollar stood high compared to its supply in the wake of an expanding current account deficit, swelling imports, rising global commodity prices and uncertainty about the 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.
Published in The Express Tribune, March 17th, 2022.
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