Pakistan’s rupee declined to a new record low amid growing headwinds from a stronger greenback and deteriorating external finances.
(Bloomberg) — Pakistan’s rupee declined to a new record low amid growing headwinds from a stronger greenback and deteriorating external finances.
The rupee dropped 0.6% to 299 per dollar on Tuesday, according to the foreign-exchange desk at Arif Habib Ltd. The previous record close was 298.9 per dollar, according to central bank data.
The currency is partly weighed by the International Monetary Fund condition for a more market-determined exchange rate for financial aid. Pakistan’s rupee slumped more than 20% this year, the worst performer in Asia, after a devaluation in January and a selloff in May.
Dollar demand is increasing and this is expected to continue in the near-term after the government lifted import restrictions for the IMF deal, said Yawar Uz Zaman, head of research at Pearl Securities Ltd.
Pakistan’s current account switched to monthly deficit of $809 million in July after surplus for four consecutive months, according to central bank data.
–With assistance from Malavika Kaur Makol and Ismail Dilawar.
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