Rupee falls for 11th day in a row
Rupee appreciated 1.89% day-on-day, but it was still down 14.7% since the beginning of current fiscal year on July 1, 2021. Photo: file
Pakistan’s currency maintained its downturn for the 11th consecutive working day, as it inched down by Rs0.14 on a day-to-day basis to a new record low at Rs200.14 against the US dollar in the inter-bank market on Friday.
It closed at Rs200 against the greenback on Thursday, according to the central bank.
The little drop in the domestic currency’s value came after Pakistan reported a current account deficit of $623 million for April 2022 against market expectations for $1-1.5 billion deficit.
Earlier, the rupee dropped by a cumulative 7.70% (or Rs14.31) in the prior 10 consecutive working days. With the latest fall of Rs0.14, the total depreciation came in at Rs14.45 in 11 successive working days.
Before the market’s closure on Friday, the rupee moved on both sides of the fence. It hit intra-day low at Rs201.05 and intra-day high at Rs199.90.
The two-way movement in the rupee’s value, contrary to the downslide in previous days, suggested that the current cycle of depreciation has peaked out.
A financial market expert, however, said “revival of IMF loan programme is a must to arrest the free fall in rupee’s value in the coming days.”
Published in The Express Tribune, May 21st, 2022.
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