The US dollar hit an all-time high against the Pakistani rupee in the interbank market on Tuesday, trading between PKR 300-307. This marks a significant drop in the value of the Pakistani rupee, which has been steadily depreciating in recent months.
There are a number of factors that have contributed to the rupee’s depreciation, including:
- A widening current account deficit has led to increased demand for foreign currency to finance imports.
- A decline in foreign exchange reserves has weakened the government’s ability to intervene in the currency market.
- Political uncertainty has made investors wary of investing in Pakistan.
The sharp depreciation of the rupee is a major concern for the Pakistani economy. It will make it more expensive for Pakistanis to import goods and services, which will stoke inflation. It will also make it more difficult for the government to repay its foreign debt.
The government is taking a number of steps to try to stabilize the rupee, including:
- Increasing exports.
- Reducing imports.
- Raising interest rates.
- Seeking a bailout from the International Monetary Fund (IMF).
However, it remains to be seen whether these measures will be enough to prevent the rupee from further depreciating.