At the close of the interbank foreign currency market on Monday, the Pakistani Rupee (PKR) dropped to an all-time low of Rs203.86 versus the dollar.
The rupee lost Rs1.51 in value against the dollar, ending at Rs203.86 against the dollar, down from Rs202.35 last Friday in the interbank foreign currency market.
On June 07, 2022, the local currency reached its lowest point of Rs202.83 to the dollar.
According to currency analysts, the local currency was under pressure due to a large drop in foreign exchange reserves and strong demand for import payments.
The market, they added, remained turbulent throughout the day. The market is agitated as a result of this. According to the expert, this is eroding the trust of importers, exporters, and international investors.
The State Bank of Pakistan’s (SBP) official foreign exchange reserves fell by $497 million to $9.226 billion in the week ending June 3, 2022, compared to $9.723 billion a week earlier, on May 27, 2022.
The central bank’s foreign exchange reserves were previously estimated to be $9.233 billion on December 6, 2019.
During the current fiscal year, the rupee has been under pressure versus the dollar. The State Bank of Pakistan (SBP) has taken a number of steps to strengthen the country’s balance of payments and currency. The steps, however, failed to help the rupee regain its losses.
On May 23, 2022, the SBP announced a 150-basis-point hike in the policy rate to 13.75 percent from 12.25 percent.
To strengthen the balance of payments and stabilize the rupee, the government has ordered a blanket embargo on imports. However, these attempts proved to be ineffective, as the exchange rate plummeted today.