The Pakistani Rupee on Thursday recorded all time low against the US dollar with the local unit dropped Rupee 11.16 in interbank trade.
According to the details, the US dollar rises on the fourth day of the business week and remains at the highest level.
In interbank trading, the dollar became more expensive, reaching Rupee 296 at the highest level, meanwhile, selling for over Rs300 in the open market.
Forex dealers stated that the banks are selling dollars to the importers at Rs298, after the decline of Rs11.16 in two days.
The rupee depreciation has piled up foreign debt without taking new external loans, making imports further expensive for Pakistan, which faced a six-decade high inflation reading at 36.4% in April 2023.
Finance official believe that the rupee has been depreciating due to political and social chaos caused after the arrest of PTI Chairman Imran Khan.
Moreover, the dollar demand supply gap has also widened as the exporters have stopped selling US currency on speculations that rupee would depreciated further versus the greenback. On the other hand, importers are seen rushing to buy dollars.
This gap in the demand and supply of the foreign currency in the interbank market have contributed to the rupee’s devaluation.