Rupee takes battering during intra-day trading; falls to 222 against USD

Pakistani rupee

Islamabad: The Pakistani Rupee continues getting battered against the US dollar in the inter-bank market, as on Tuesday, it fell to Rs 222 against the USD – setting a new low.

According to the State Bank of Pakistan (SBP), the PKR lost Rs4.25, or 1.97%, against the US dollar and closed at Rs 215.20.

Following the downfall, the PKR was quoted at 222, massive depreciation of Rs5.8 against the greenback.

Analysts said calls for general elections gained momentum after Pakistan Tehreek-e-Insaf’s (PTI) victory in the elections held on Sunday, putting economic reforms on the back seat again.

Fitch Ratings downgrades Pakistan’s outlook to negative

Fitch Ratings, an American credit rating agency, revised and downgraded Pakistan’s outlook from stable to negative due to the significant deterioration in Pakistan’s external liquidity position and financing conditions since early 2022.

Read: Fitch Ratings downgrades Pakistan’s outlook to negative from stable

In a statement on Monday, the agency affirmed Pakistan’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B-‘.

Regarding the deal with the IMF, it said that it sees board approval of Pakistan’s new staff-level agreement with the IMF, but there would be “considerable risks to its implementation and to continued access to financing after the programme’s expiry in June 2023 in a tough economic and political climate”.

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