Pakistani rupee continues to slide, hits 11-month low

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Islamabad [Pakistan], August 25 (ANI): Continuing its downward slide, the Pakistani rupee fell from 44.7 on Monday to 45.02 on Tuesday against the UAE dirham, a drop of 0.67 per cent, hitting a nearly 11-month low, according to xe.com.

As per Khaleej Times, Pakistani currency was trading at 165.4 against the US dollar on Tuesday.
Pakistan on Tuesday received USD 2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to support low-income countries affected by the coronavirus.

This took Pakistan’s forex exchange reserves to USD 22.25 billion, but this big jump in forex reserves, too, failed to rein in the rupee’s slide, reported Khaleej Times.

Rajiv Raipancholia, CEO of Orient Exchange, said the Pakistani rupee continues to depreciate against the US dollar over the past four months.

“The reported deficits in the current account together with inflation in certain core items such as food and oil are some of the reasons behind this fall in rupee. Increasing imports to Pakistan is another reason that dollar continues to remain strong, thus leading to a weaker rupee,” he said.

Analysts estimate that remittances to Pakistan will continue to remain strong as a weaker rupee will attract more inflow of foreign funds, reported Khaleej Times. (ANI)

 

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