The rupee has plummeted to an all-time low of 191 versus the dollar as a result of Pakistan's ongoing political instability. Pakistan's currency has been weakening for several months due to political unrest in the country. In this environment, the rupee plummeted last week when the opposition filed a vote of no confidence in prime minister Imran Khan's government. In the last month, the Pakistani rupee has lost more than 6% of its value. In early thursday morning, the rupee was trading at 191 versus the dollar, while in recent activity, it was trading at 189.

The current upheaval and political uncertainty were reflected in the value of the rupee, according to Kamath Sohail, head of Topline Securities, a Karachi-based brokerage and economic research firm. Pakistan's foreign exchange reserves, which are reliant on foreign currency, have been unable to keep pace with the country's rising trade imbalance. As a result, foreign exchange reserves plummeted to $ 12 billion in the first week of March, down from $ 16 billion in the first week of February, as the deficit increased to 70% in fiscal 2021-22's first nine months. Since 2021, the rupee has lost 18 percent against the dollar.

The rupee's depreciation is also influenced by Pakistan's relations with the united states and the international Monetary Fund. Pakistan's repayment troubles have been addressed by the international Monetary Fund (IMF), which has approved a $ 6 billion bailout in 2019. It's worth noting that negotiations to settle the outstanding sum are underway, with half of it already paid.
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G GOWTHAM

08/04/2022 03:30 AM