KARACHI – The Pakistani rupee plummeted in value to more than 305 against the US dollar in interbank as people fear that basic commodities like food and fuel could get more expensive as consumers are already facing back-breaking inflation.
Data shared by State Bank suggest that local currency moved down by Rs1.09 in the 10th successive fall as the cumulative loss in the local unit reached around 5 percent in the last two weeks.
In the early hours, the rupee shows some resistance but continues to drop at noon and slides to 305.54 in the inter-bank market.
Interbank closing #ExchangeRate for todayhttps://t.co/wZnBHxjjGt#SBPExchangeRate pic.twitter.com/1ajdB67TzJ
— SBP (@StateBank_Pak) August 31, 2023
In the previous session, the rupee closed at the then-record low of 304 against the greenback in a fresh round of depreciation.
In the open market, the currency decreased to Rs325 against the dollar, according to the Exchange Companies Association of Pakistan while the difference between exchange rates in the two markets further widened to around Rs20.
Experts suggest that several factors stemmed from the depreciation of local currency including the smuggling of US dollars from Pakistan to neighbouring countries, especially Afghanistan, and the import pressure.
