KARACHI: The Pakistani rupee continued to lose grounds unabated for the 14th consecutive session on Wednesday and closed at a report low of Rs239.65 in opposition to the US greenback within the interbank market throughout intraday commerce amid floods and a scarcity of buck within the nation.
The native unit final made a historic low of Rs239.94 on July 28, 2022.
Within the interbank market, the native unit misplaced Re0.74, or 0.31%, and fell to Rs239.65 per greenback, down in worth from the earlier shut of Rs238.91 in opposition to the greenback.
The greenback now stands solely Rs0.29 wanting the all-time excessive stage of Rs239.94.
The rupee has been one of many worst performing currencies within the rising markets and has fallen by practically 9% to this point this month owing to wide-ranging components.
Rupee worst-performing foreign money
The Pakistani foreign money has turn out to be the worst-performing foreign money in rising markets in September because the cataclysmic floods halted financial actions and prompted complete amassed losses of over $30 within the nation.
The native unit has weakened by roughly 27%, or over Rs30, in opposition to the US greenback because the begin of the present fiscal 12 months 2022-23.
There are fears it could additional lose its worth, nonetheless, Pakistan just isn’t the one nation that’s going through the depreciation of its foreign money. There are a bunch of different international locations which can be going through the same foreign money weak spot, which is making their economies unstable and traders pensive.
Chatting with Geo.television a day earlier, former advisor to Finance Ministry Dr Khaqan Najeeb stated the greenback remained agency at a two-decade excessive versus main friends, as traders need to the Federal Reserve to proceed its aggressive rate of interest mountaineering.
“The US greenback is in a powerful momentum for time being,” he maintained.
The analyst elaborated that the lengthy interval of regular progress and low inflation the US economic system had earlier than COVID-19 is being changed by a “increased inflation globally”.