December 6, 2022
Business

Floods and political unrest are to blame for the rupee ongoing decline versus the dollar

Floods and political unrest are to blame for the rupee ongoing decline versus the dollar

KARACHI: On Tuesday, the Pakistani rupee lost ground against the US dollar for the eighth straight session due to devastation from floods and ongoing political unrest.The local currency shed Rs1.62 from yesterday’s close of Rs229.82, or Rs2.1, to Rs231.92 in the interbank market.Additionally, the rupee decreased versus the dollar last week by Rs9.21, or 4.2% overall.

The Pakistani rupee is anticipated to continue losing value against the dollar this week, according to traders, because there is no clear plan in place to revive the economy and investors are fleeing the country.Since Imran Khan’s government was overthrown in April, Pakistan has seen political instability as a result of many concerns with the policies of the new administration.

The ECAP representative stated that it was anticipated that the rupee would appreciate against the dollar once the International Monetary Fund (IMF) loan came in, and it did as it increased by Rs2. But despite receiving funding from the international lender, the government did not receive funding from multilateral and bilateral organisations, he pointed out, therefore the decline has continued ever since with just tiny increases.

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