Pakistan Rupee Slumps To Record Low Against US Dollar: Report

Pakistani currency has dropped at its record low against the US dollar due to Rs 1.81 decline in the inter-bank market during intra-day trading, with the exchange rate sliding to Rs 175.73, local media reported on Friday.

The News International reported that the local currency depreciated around Rs 1.54 against the greenback to settle at Rs 175.73 on Friday. Cumulatively, the local currency has lost around Rs 5.76 during the last seven days.

Analysts believe the demand for the foreign currency stood higher than supply amid an increase in import payments, rising global commodity prices and uncertainty about the resumption of the IMF loan programme, the publication reported.

The currency last dropped to a record low of Rs 175.26 against the US currency on October 26. The fall is continuing amid the rising inflation in the country. Prices of daily needs have soared to a new high in Pakistan, drawing condemnation and large-scale protests against the government by the opposition.

Reza Baqir, SBP Governor, had earlier created quite a stir on social media after he defended the rupee depreciation saying it benefited overseas Pakistanis and claimed that inflation in the country was artificial and would be controlled, according to ARY News.