For the third session in a row, the Pakistani rupee lost 97 paise in the interbank market on Friday as it fell against the dollar.
The local currency depreciated by 0.44 per cent from yesterday’s finish of Rs221.5 to settle at Rs222.47 per dollar, according to the State Bank of Pakistan.
Data gathered by Mettis Global show that the value of the PKR has decreased by Rs16.64 or 7.52 per cent since the beginning of this fiscal year.
This week’s first day saw the sovereign default risk rise to its highest level since November 2009. On October 25, the country’s five-year credit default swap (CDS), which functions as a form of insurance against the risk of sovereign default, climbed by more than three per centage points, reaching 52.8pc, a 13-year high.
Investors’ decreasing confidence in Pakistan’s capacity to repay its international loans is reflected in the growing CDS level.
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