A substantial decline in foreign exchange reserves, persistent political instability, and hefty petroleum costs dragged Pakistan’s currency (PKR) to new lows on Friday, with the rupee closing over the 184 level for the first time against the US dollar following a 0.33 per cent drop in the interbank market.
After a day-on-day devaluation of 61 paisas, the PKR closed at 184.09, its lowest level recorded, according to the State Bank of Pakistan (SBP).
Since its most recent peak in May of last year, the PKR has lost over 17 per cent, while the local currency has devalued by over 14 per cent in the fiscal year to date (FYTD).
The last time the PKR rose versus the US dollar (during its most recent weakening run) was on March 11. It has dropped in 13 sessions since that while staying stable in the remaining.
Moreover, the State Bank of Pakistan’s (SBP) reserves also fell by $2.915 billion, to $12.05 billion, according to figures issued by the central bank on Thursday.
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