October 7, 2022
Business

The rupee weakens versus the dollar for the tenth session in a row

The rupee weakens versus the dollar for the tenth session in a row

In addition to the loans that were anticipated from international and bilateral institutions, the Pakistani rupee resumed its downward trend on Thursday, falling against the dollar for the tenth straight day. The rupee lost Rs1.68 in intraday activity on the interbank market, falling to Rs236 from its previous close of Rs234.32 against the dollar.

Following guarantees from friendly nations like Saudi Arabia and the United Arab Emirates, the International Monetary Fund (IMF) gave Pakistan the urgently required $1.17 billion rescue package. The local unit is still under strain, nevertheless, as friendly nations and financial institutions have yet to offer the much-needed financial assistance.

Dr. Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, outlined a variety of factors that contributed to the rupee’s ongoing slide. He said that the uncontrolled movement of the rupee was caused by the smuggling of dollars, an increase in the trade deficit, delays in receiving payments from allies, and increased dollar import requirements as a result of the floods.

Economic damages from floods are predicted to exceed $30 billion, and it will likely take several months to fully restore millions of people’s lives. In addition to the floods, which even overshadowed the IMF program’s rebirth, the nation is currently experiencing political turmoil, which has kept investors on their toes.

Since Imran Khan’s government was removed in April, there has been ongoing political instability in Pakistan. Investors have a number of reservations regarding the current government’s policies notwithstanding the passage of months.

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